Can scholarship be denied due to savings despite FAFSA SAI being below COA?

This is a common misunderstanding! "Financial need" for private scholarships isn't necessarily calculated the same way as federal aid. Each scholarship organization sets their own definition. While FAFSA uses the SAI formula to determine need (COA minus SAI equals need), private scholarships might look at your total assets differently. Some may indeed take your savings into consideration, but that doesn't automatically disqualify your son. Most reputable scholarship committees understand the difference between emergency savings and college funds. I'd recommend including a brief cover letter explaining the purpose of those savings if you're concerned.

i had this exact same thing happen with my daughter last yr!! the scholarship ppl wanted to see our entire fafsa and bank accts and everything. we ended up getting half the scholarship amount and they never really explained why but im pretty sure it was bc we had some money saved up for a house downpayment. its so frustrating bc that money wasnt for college at all!

I work with several scholarship programs, and I can clear this up. Most private scholarships define "financial need" as having ANY gap between your SAI and the cost of attendance. If your SAI is $52,300 and the COA is $65,000, then you have demonstrated a financial need of $12,700. Your savings technically shouldn't matter since they've already been factored into your SAI calculation. However, some smaller scholarship providers do review bank statements separately because they have limited funds and want to help those with the greatest need. They may consider your savings as an available resource even if it's not earmarked for education in your own financial planning. I suggest you submit the documentation as requested, but include a brief note explaining that your savings are for emergency purposes and home repairs, not education expenses. Most committees are reasonable about this.

I HATE how the financial aid system basically punishes responsible parents who save money!!! My daughter lost out on thousands in aid because we had money saved for emergencies. Meanwhile my neighbor who blows every paycheck on vacations and has zero savings got way more aid for their kid with similar income to ours. The whole system is BROKEN!

Have you tried contacting the scholarship organization directly to ask about their specific criteria? I had a similar issue last year with my son's scholarship application, and when I called the foundation, they were actually very transparent about how they evaluate financial need. They explained they look at the FAFSA gap first but also consider special circumstances. Unfortunately, I couldn't get through to anyone when I called their main line, so I used Claimyr (claimyr.com) to connect with them. Worked great - you might want to check out their video demo: https://youtu.be/TbC8dZQWYNQ. Same service works for getting through to Federal Student Aid when you have FAFSA questions, which saved me hours of waiting. Once I actually spoke to someone at the scholarship foundation, they were really helpful in explaining their process.

This happened w my kid two yrs ago. They actually told us upfront that any non-retirement savings over $25k would reduce scholarship eligibility. Each scholarship has different rules! Your SAI doesn't matter as much for private scholarships bc they can make whatever rules they want. Some are super strict and some are more understanding about emergency savings vs college funds. Maybe ask other parents who've gotten this scholarship before?

just wondering but did u report all ur savings on the FAFSA? my cousin told me they only reported some of their accounts and got way more aid lol

To follow up on my earlier comment - one important thing to understand is that many private scholarships have a limited pool of funds and must make difficult decisions about allocation. While your SAI gap of $12,700 demonstrates official financial need, they might be comparing your application to students with much larger gaps ($30K+) and limited or no family savings. This doesn't mean your son doesn't deserve consideration, but it helps explain their perspective. They're trying to help students who might not attend college without their support. If you do include a letter explaining your savings, focus on specific obligations (supporting your mother, upcoming necessary home repairs, etc.) rather than just saying it's an "emergency fund.

btw did anyone mention that some scholarships look at CSS Profile not just FAFSA? css counts assets WAY differently and is way more strict about savings