Outside Scholarship Policies

Student Financial Services encourages students to apply for outside scholarships each year. Outside scholarships can be used to reduce the student’s debt, or, if the student wishes to keep her Stafford loan, the student can use the loan to help manage the family contribution.

Students receiving outside scholarship should inform Student Financial Services as soon as possible because any outside scholarships received, per institutional and federal policy, must be considered as part of the student's financial aid package.

If a student receives an outside scholarship(s), we will first reduce the student’s institutional and federal need-based loans included in her original financial aid package. If the outside scholarship(s) exceed the amount of the need-based loans, the remainder reduces the College grant. The total financial aid will remain the same unless the student requests her full federal Stafford loan eligibility rather than the loan reduction. (Important note: If the student's institutionally determined need is met solely by College need based grant, such as the Mount Holyoke Grant or the Mary Lyon Legacy Grant, any outside scholarship(s) will reduce the institutional grant aid dollar for dollar. )

The Subsidized Federal Stafford Loan will be added back to the package unless the total aid package exceeds federal need eligibility.  If this occurs, a student is usually able to borrow an equivalent amount in unsubsidized federal student loan.  However, to help reduce overall student loan debt students are encouraged to consider reducing their FDSL by the amount of her outside scholarship. 

See the example below.

Examples Original Package Revised Package
Mount Holyoke Grant
$20,000
$19,000
Student Loan
4,000
0
Student Employment
2,100
2,100
Outside Scholarship
0
5,000
TOTAL PACKAGE 26,100 26,100

Employer Benefit

When a parent receives a tuition benefit through her or his employer, this funding is treated as an outside scholarship, first reducing need-based loans (federal and institutional) and then any College grant.  If your parent receives a tuition benefit for your educational expenses and this benefit is not listed in your aid package, please notify Student Financial Services.  Tuition grants may only cover tuition.  If a combination of tuition grants exceeds tuition costs, tuition grants may be adjusted.