Financial Aid Policies Handbook
Outside Scholarships, Other Loans, and the Payment Plan
We remind students that they must notify the Financial Aid office of receipt of any outside assistance regardless of the amount. To ensure proper accounting of the scholarship, outside scholarship checks must be sent to the Financial Aid office, not to the Student Accounts office. In most cases, private or outside scholarships may not reduce the financial aid award. One exception is if the amount of the outside scholarship causes the total aid award to exceed the amount of Federal Aid eligibility. In this case we must reduce the amount of aid so the total does not exceed the limits according to Federal regulations. When this occurs, we will reduce the self-help (loan or work-study) by the amount of the outside scholarship. If the outside scholarship still exceeds the amount of Federal Aid eligibility and the student has been awarded Federal or State Funds, those funds would be reduced accordingly (except for the Federal Pell Grant which is not affected by these regulations). Once all Federal and State Funds (except for the Federal Pell Grant) have been eliminated, no further reduction of the student's award will occur unless the total package exceeds the total cost of attendance.
Outside scholarship funds are credited to the student account per donor instructions. For example if a check is sent for a whole school year half is credited in the fall and half in the spring. If there are no instructions funds are credited when they are received.
Before exploring other loan options, first consider borrowing the Federal Direct Stafford Loans and your parents should consider the Federal Direct PLUS Loan. Private alternative educational loans for parents and students may be another funding option. Terms and requirements for alternative loans will vary. We encourage you to consider your alternative loan options carefully. For some families, a home-equity loan or similar loan is the best source of funding. Bank loans and loans from retirement funds or insurance plans may be an alternative source of additional funding. Making withdrawals from retirement plans may have tax implications and may impact future eligibility for financial aid.
The Payment Plan Option
For questions about Payment Plans, Please contact the student accounts office at (719) 389-6698, or email