Why Do I have to Tell My College if I Earn an Outside Scholarship?

A male student is writing on a paper on the desk.

Flickr user COD Newsroom

Outside scholarships” are any scholarships you earn from external sources, basically anyone besides the federal government or the school itself. So why do you have to report outside scholarships to your school?

It’s All About Financial Need

When you earn outside scholarships, your financial need goes down—you now have additional money that you didn’t before. With your financial need lowered, you now need less money from the school itself to attend.

Therefore, whenever you get an outside scholarship, you tell your school’s financial aid office so they can adjust your reward letter.

Should I Not Pursue Outside Scholarships, Then?

By all means, keep applying for those outside scholarships! Even if your school lowers the amount of financial need they’re giving you, you’re still earning free money from the scholarships themselves, after all. Every scholarship counts. The more you earn from them, the less you have to take out in student loans (which should always be a last resort for paying for college).

If you do need a student loan, however, try using College Raptor’s new Student Loan Finder to discover personalized loan options. You can compare lenders and interest rates to find the best deal for you—for FREE!

 

Lender Rates (APR) Eligibility
Citizens logo.
5.50%-16.12%* Variable
3.99%-15.61%* Fixed
Undergraduate and Graduate
VISIT CITIZENS
Sallie Mae logo.
5.54% - 15.70% Variable
3.99% - 15.49% Fixed
Undergraduate and Graduate
VISIT SALLIE MAE
Credibe company logo.
4.63% - 17.99% Variable
3.49% - 17.99% Fixed
Undergraduate and Graduate
VISIT CREDIBLE
Lendkey company logo.
6.00% - 13.75% Variable
3.99% - 13.75% Fixed
Undergraduate and Graduate
VISIT LENDKEY
Ascent company logo.
5.66% - 14.72% Variable
3.69% - 14.56% Fixed
Undergraduate and Graduate
VISIT ASCENT
3.70% - 8.75% Fixed
Undergraduate and Graduate
VISIT ISL
Earnest company logo.
5.62% - 16.85% Variable
3.69% - 16.49% Fixed
Undergraduate and Graduate
VISIT EARNEST
5.00% - 14.22% Variable
3.69% - 14.22% Fixed
Undergraduate and Graduate
VISIT ELFI
College Raptor is not a loan lender and does not assume responsibility for suggesting a loan to a user who may not be eligible for it. Rates, terms, conditions, eligibility, approval, and other considerations are the decisions of the lenders and may vary depending on which lender or marketplace the user selects. We urge users to carefully consider and review all loan options and terms before committing to taking out a loan.

Subscribe to Our Newsletter

Join thousands of students and parents learning about finding the right college, admissions secrets, scholarships, financial aid, and more.