Outside scholarships go to reducing student loans, right?

[JFSinIL]

Ds just won a $2,000 per year Foresters Scholarship - safe to assume a college will reduce his student loans by that amount? Or can we apply it to the EFC amount?

 

This was the only outside scholarship to which he applied, so glad he got it.

[Kareni]

Congratulations to your son!

 

You will need to check the policy of your child's school. My daughter's college allows the first $500 of outside scholarships to directly benefit the student. After that, half of the remaining amount reduces her need based grant and the other half will reduce loans.

 

Regards,

Kareni

[creekland]

If it's a federally supported loan they are supposed to reduce the loan before any amount given from anyone (other than the student or parents) can go toward the EFC. If the loans are private, it's up to the school.

 

Either way, it's nice to have a scholarship without payback needed than to have loans OR more you have to pay. Congratulations!