Will FAFSA need-based aid stack with $20K merit scholarship despite low SAI?

Congrats to your friend's daughter! Merit aid and need-based aid work differently, and yes, they CAN stack, but it's complicated. Schools have their own policies for how they package aid. Some schools practice "displacement" where they'll reduce need-based aid dollar-for-dollar with outside scholarships. Others allow full stacking up to the cost of attendance. For Pell Grants specifically, the good news is that those are never reduced because of merit scholarships. If her SAI qualifies her for Pell, she'll get it regardless of merit awards. Same with subsidized federal loans - those remain available. However, the school's institutional aid (grants they give from their own funds) might be reduced. You should have her contact the financial aid office directly to ask about their specific policy on "scholarship displacement" or "award stacking.

When my daughter got a merit scholarship, the school TOTALLY reduced her institutional grant by the exact same amount!! It was so frustrating - felt like a bait and switch. Make sure your friend's daughter asks SPECIFICALLY about their displacement policy. Some schools are better than others. The Pell Grant should be safe though, since that's federal.

This is actually a really nuanced topic. Here's how it typically works: 1) Federal aid (Pell Grants, subsidized loans) is never reduced by merit scholarships 2) Outside scholarships may reduce need-based aid at some schools 3) Institutional merit vs. need-based policies vary WIDELY by school Some schools have a "meet full need" policy where they guarantee to cover 100% of demonstrated need AFTER accounting for merit aid. Others will let you stack both up to Cost of Attendance. The key metric is the school's "need-based aid displacement policy." Ask the financial aid office: "How does receiving a merit scholarship affect need-based financial aid awards?" Also, check if the scholarship has requirements for renewal (minimum GPA, etc). Some merit scholarships get harder to maintain after freshman year.

my daughter got both last yr. the pell grant is separate from school aid so dont worry abt that. what u SHOULD worry abt is if the 20k renews all 4 yrs. some schools give big $ 1st yr then drop it. check the terms!!!!!

From my experience working with students, I'd also recommend checking if this school practices "front-loading" - where they give more generous aid packages to first-year students than to continuing students. This is surprisingly common. Ask specifically: "Is this financial aid package representative of what she can expect for all four years, assuming family finances remain similar?" Also look into whether there are any additional scholarship applications specific to her intended major that she could submit. Many departments have funds that aren't automatically considered with the general admission application. Finally, if you're struggling to get answers from the financial aid office over the phone (I know wait times can be ridiculous this time of year), you might want to try using Claimyr (claimyr.com) to get through faster. I've had several students use their service to connect with financial aid offices and FAFSA customer service without the endless hold times. They have a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works.

have you tried the net price calculater on the schools website? it should tell you exactly what shell get based on all her info. my son got a similar merrit award and still got all his need-based stuff but every school is diffrent

Congratulations!! What i dont see anyone mentioning is that if the SAI is low enough for full Pell, she might also qualify for state grants depending on where you live. In my state, students with Pell eligibility automatically get considered for the state grant program too, which can be another few thousand. Does the $20k cover full tuition or just part of it?

One more thing to consider - when you say she qualifies for "all of the Pell Grant," the maximum Pell for 2025-2026 is expected to be around $7,395. Combined with the $20K merit scholarship, that's $27,395 in gift aid that doesn't need to be repaid. On top of that, she'll likely be offered subsidized loans (around $3,500 for freshmen), and potentially unsubsidized loans as well. If her SAI is low enough, the school may also offer institutional grants to cover more of the gap. After the financial aid package arrives, if there's still a significant gap, you can always appeal the financial aid offer, especially if there are any special circumstances not reflected in the FAFSA.

As someone who went through this exact situation last year, I can confirm that merit and need-based aid can definitely stack, but the devil is in the details! My daughter received a $15K merit scholarship and still kept her full Pell Grant plus subsidized loans. However, her institutional need-based grant from the school was reduced by about $8K. The key questions to ask the financial aid office are: 1. "What is your scholarship displacement policy?" 2. "Will outside/merit scholarships reduce institutional grants dollar-for-dollar?" 3. "Are there any aid sources that are protected from displacement?" Also, since you mentioned Illinois and the $60K total cost - definitely apply for the MAP grant ASAP if she hasn't already! The funding runs out quickly each year, but it can be worth several thousand for Pell-eligible students. One last tip: if the final aid package still leaves a big gap, don't be afraid to negotiate. We successfully appealed our daughter's package by explaining some financial circumstances that weren't fully captured in the FAFSA, and they increased her institutional grant by $3K per year.