My son just got a couple of small scholarships and I wanted to know if the school is going to subtract that from the amount they calculate for his loans. Otherwise, what good are they? I know they will reduce the amount he will owe but since that is now approaching his first born child, it doesn’t matter.
Any scholarship he receives will reduce his ‘need’ (as calculated by the financial aid office) dollar for dollar. So you are right, it doesn’t help him now anymore than a loan But it’s still nice to think that somebody is now paying him to go to school.
The exception is the rare case in which one’s calculated financial need is higher than the maximum amount of loans he is elligible for. In that case they wouldn’t reduce his loans until his need met his loan eligibility.
Actually, his max Stafford loan was $700.00 short for the next two semesters. He applied for a direct loan and the university already calculated the amount. Will they recalculate that and tell the bank?