How many scholarships can you actually have at once?

I've heard different things about how many scholarships you can receive without it turning into an issue. Like, is there a limit before it affects your financial aid package or something? I'm aiming for quite a few scholarships if I can, to cover a good chunk of my expenses. Does having a lot of scholarships impact other financial aid like grants or loans? Just trying to plan and make sure I know what I'm getting into!

When it comes to scholarships, there's technically no limit to how many you can receive. However, it's important to understand how these scholarships might influence your financial aid package.

When colleges create your financial aid package, they include federal aid, state aid, institutional aid (aid from the school itself), as well as any outside scholarships. They use your Expected Family Contribution (EFC), which has been replaced by the Student Aid Index (SAI) as of July 1, 2023, to calculate how much aid you are eligible for. The SAI is the amount of money that the government calculates your family should be able to contribute to your education, based on your family's financial information.

Colleges take into account your total Cost of Attendance (COA), which includes tuition, fees, room and board, books and supplies, transportation, and personal expenses. If your SAI plus the total of your financial aid exceeds the COA, the financial aid office has to reduce your financial aid until it fits within the COA. This is known as an over-award.

In case of an over-award, schools often reduce self-help aid first, which includes work-study opportunities and loans, before reducing any grants or scholarships because grants and scholarships, unlike loans, do not need to be paid back and are therefore more beneficial to students. If further reductions are needed, the school might decrease the amount of aid they offer you.

To avoid any surprises, it's a good idea to inform a college's financial aid office about any outside scholarships you receive as early as possible. If your school has a scholarship displacement policy, they might reduce your financial aid if you win an outside scholarship. However, many schools will first deduct from your loan or work-study awards rather than grants or school-based scholarships. Each institution may handle this differently, so it's essential to contact your school's financial aid office directly with any questions.

Keep in mind, though, that private scholarships will never reduce your eligibility for federal or state grants. Those will stay the same regardless.

One thing to keep in mind is that scholarships could potentially affect your taxes. If you use the money for anything other than education-related expenses ( tuition and fees, books, supplies, and equipment), it could be considered taxable income.

So, while it's wise to aim for and apply for many scholarships, it's also important to understand the financial implications so you can make an informed decision. Good luck in your scholarship hunting!