Outside Scholarship Policies

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

Students receiving outside scholarship, awards or other resources should complete our Outside Scholarship/Outside Resources Reporting form as soon as possible. Any outside scholarships received, per College 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 College 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 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 College grant 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
Student Loan
Student Employment
Outside Scholarship
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.