Student Financial Aid Policy Analysis

NSPA Scholarship Displacement Survey

By (September 16, 2013) Download PDF | Download Summary

Award displacement occurs when receipt of one form of financial aid, such as a private scholarship, leads to a reduction in other forms of financial aid, especially grants and scholarships. For example, federal and state statutes and regulations, as well as institutional policies and practices, may require revisions to a student’s need-based financial aid package when the student receives a private scholarship. Institutional policies concerning award displacement are often described in a formal outside scholarship policy.

The National Scholarship Providers Association (NSPA) conducted a survey of scholarship displacement policies for a carefully stratified sample of 4‐year colleges and universities in September 2011. The survey responses were well‐distributed according to a variety of characteristics, such as geography, percentage Federal Pell Grant recipients, tuition and fees, enrollment, minority percentage and selectivity.

Four fifths (79%) of the colleges had “optimal” outside scholarship policies that reduced unmet need (if any) before self‐help and self‐help before gift aid.

One sixth (17%) of colleges either reduced gift aid first or required students to maintain some amount of unmet need (e.g., summer work expectations and minimum student contributions).

Download NSPA Scholarship Displacement Survey (PDF)

Download NSPA Scholarship Displacement Survey Summary (PDF)

Policy Analysis & News Inquiries

Edvisors provides indispensable information, tools and resources to help students further their education. If you are a journalist or researcher, we want to help you get the information you need. You can reach our team at Press@Edvisors.com