Private Scholarships = More Student Debt

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While winning a private scholarship can be a dream come true, a little known requirement can render that dream a nightmare!

In order to meet cover the annual cost-of-attendance, most families use a combination of savings, loans, grants, awards, and private scholarships.  Private scholarships can be an vital, sometimes making the difference between attending a dream school or a safety school, or even attending at all.

Unfortunately, a fact known to few, if any, parents is that students legally are obligated to inform their school of choice when they receive a private scholarship.

The upside – at some schools, these awards reduce self-help aid, such as student loans or work-study.  The downside – at some schools, private scholarship awards can end up reducing the aid awarded.

And, unfortunately, at many schools, institutional aid – the free money that need not be repaid – is reduced.  Thus, students typically will need to take out student loans to cover the aid the private scholarship replaced.

The moral of the story – winning a private scholarship may be detrimental to your student’s long-term financial health!

For assistance with designing and implementing a proper college planning campaign, contact our professional college planners to schedule your family’s free, no-obligation evaluation.

 

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