Introduction

The Trump administration has proposed to limit the use of federal financial Aid to pay for students’ non-tuition expenses at colleges and universities. The proposal would change how much you could use your scholarships for rent and books. This could lead to more displacement, meaning that some students would have to borrow more money from the government or their families to attend school.

What is scholarship displacement?

Scholarship displacement is a phenomenon that occurs when students use outside scholarships to pay for their education, and then their financial aid award is reduced. It’s essential to know how much of your tuition and fees will be covered by outside scholarships before you apply for financial Aid because if your aid package doesn’t cover the total cost of attendance, you might have to pay more than expected–and possibly even more than what the scholarship recipient would have paid out-of-pocket.

Scholarship displacement can be avoided if students consider that some colleges may require them not only to fill out FAFSA forms but also to submit documentation showing how much money they received in outside scholarships before sending them any institutional funds or awarding any merit grants based on GPA/test scores alone; otherwise, those awards won’t count toward satisfying any remaining balance due after taking into account all other sources such as loans or work-study programs available through an institution’s financial aid office.

What does the government say about displacement?

The government says it’s okay to use scholarships to cover costs not covered by financial Aid.

The Federal Student Aid Office has a list of colleges that have been approved to displace federal financial Aid, including:

• The University of California, Los Angeles (UCLA)
• The University of Southern California (USC)

Pepperdine University Arizona State University (ASU) The list is current as of July 2018.

As of 2018, there were a total of 921 schools that had received approval to displace federal Financial Aid. However, these schools are only approved to replace loans and work-study programs—not grants or scholarships. If your school is not on the list, you cannot use its scholarship money to cover expenses covered by Financial Aid.

Does the government limit how much you can use your scholarships?

The government keeps how much you can use your scholarships. The same goes for federal student loans and work-study programs. And the same goes for federal grants, which may be awarded on a first-come, first-served basis.

If you’re worried about using too much of your financial aid money in one semester or year, don’t be! You’ll have plenty of time to apply again next year if need be–and if you’re still eligible for more Aid after exhausting all available sources (including any remaining funds from previous years), then there’s no harm done!

What if my family needs more financial Aid than I qualify for?

If you’re a student who needs more financial Aid than you can qualify for, it’s essential to consider all the available options.

• Consider outside scholarships. Many private scholarships aren’t based on merit or academic performance – these can be awarded based on ethnicity, community service, and disability status. For example, A scholarship from the National Hispanic Institute will provide up to $3,000 per year for students of an underrepresented group in higher education (such as Latino/a students).
• Consider student loans. If your family has already exhausted other options and still needs additional funding for college expenses beyond what is provided by federal and state grants, consider taking out a student loan through one of several different lenders, such as Sallie Mae or Wells Fargo Financial National Bank (WFNB). Although these loans have variable interest rates, which may increase over time depending upon market conditions at the time they were taken out, they also offer flexible repayment terms, including deferment options during periods when money is tight, such as unemployment or illness, to reduce monthly payments while still paying off debt over time.

Can colleges change their policies about displacement?

You may wonder, “Can my college change its policies about displacement?” Yes, some colleges have policies that limit the amount of outside scholarships you can use. Some colleges also have guidelines regarding how much Aid your family can provide and how much other sources of financial assistance you can receive.

But if you’ve been awarded a scholarship more significant than your college allows, they will need help to do something about it. For example, if your college will only enable you to use $5,000 worth of outside scholarships and you win an entire ride at another school, they can do nothing.

How can I avoid scholarship displacement?

• Apply for scholarships. While you may not be able to avoid scholarship displacement, you can minimize its impact by applying for other funding sources.
• Apply early and often. The earlier you apply for financial Aid, the more time your school has to consider all possible funding sources before making final award decisions.
• Pay attention to your award letters! Suppose you’re awarded a scholarship that overlaps with your federal student loans or grants. In that case, there’s no need to worry–your financial Aid will automatically be adjusted accordingly so that it doesn’t displace any other awards (like a state grant). However, if this isn’t happening automatically and you want more money from one particular source (for example: “I’m getting $1k from my employer’s tuition reimbursement program but only $500 in grant money”): contact the appropriate office (usually Financial Aid) and ask them about any options available so that they can help ensure everything goes smoothly come award season!

It would help if you considered how to maximize all forms of financial Aid.

As a student, it’s essential to understand that there are many forms of financial Aid and scholarships. While scholarships are often based on academic achievements, merit-based Aid is awarded for things like leadership or community service. Need-based Aid considers your family’s financial situation when determining how much money you can receive; these programs include federal and state grants (which may be restricted to residents within the state). It would be best if you also considered college grants as well as work-study programs–both types of funding allow students to earn their way through school by working on campus during the school year or summer months. Lastly, loan options exist for those who need additional funds but don’t qualify for other types of assistance from schools themselves; however, these should only be used as a last resort since they will impact future borrowing abilities after graduation (and possibly even before).

Conclusion

Scholarship displacement is a complicated issue that you need to consider carefully. It’s essential to understand what kind of scholarships you have and how much they will affect the amount of financial aid you qualify for so that you can make the best decisions possible with your family’s needs in mind. You can also talk with an expert or contact your college’s financial aid office if they have any questions about their policies on this topic.