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What is Scholarship Displacement

If you’re worried about scholarship displacement—the less than favorable practice of a school reducing your need-based institutional aid to accommodate your outside scholarships before reducing loans—you want to check with your school’s policies prior to choosing a school.  Colleges are able to create their own policies regarding financial aid packaging and how they manage their own financial aid funds.

Not all schools reduce need-based institutional grants and scholarships to apply an outside scholarship to a student’s account, many schools will reduce your student loan awards reducing the amount you need to borrow.

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