Will colleges adjust scholarship displacement policies with new FAFSA siblings penalty?

This is absolutely something you should advocate for! I work in college advising, and many schools have different policies on scholarship displacement. Some will reduce loans first (best case), others reduce work-study, and the worst will reduce their institutional grants. With the FAFSA sibling penalty, many families are getting hit hard, so schools are actually becoming MORE flexible, not less. When you get your aid packages, immediately contact the financial aid office and specifically ask about their "outside scholarship policy" and request that they reduce loans first, not grants. Have your student make this request directly - it's often more effective coming from them.

my son got hit with this last year. college took away 6k in grants when he got a 5k rotary scholarship. TOTAL BS!!!! they say its "over awarding" but its really just them being CHEAP

I've been through this process with three kids (last one graduating this year). Here's what you need to know about scholarship displacement: 1. Every college has a different policy - some will protect all their institutional aid, others will reduce it dollar-for-dollar 2. Most colleges first apply outside scholarships to your "unmet need" (if any exists in your package) 3. After that, better schools will reduce loans and work-study before touching grants 4. With the new FAFSA not adjusting for siblings, I've seen colleges being MORE flexible about displacement, not less Key advice: Have your daughter contact each financial aid office directly to ask about their "outside scholarship policy" in writing. Specifically request that they protect their institutional grants because of the FAFSA sibling penalty affecting your family. Be polite but persistent. Document everything. Some schools have discretionary funds specifically for these situations, but you need to ask directly.

Anyone else having trouble even getting through to financial aid offices to ask these questions? I've been trying to call our top choice school for two weeks and keep getting voicemail. So frustrating!

Financial aid director here. While I can't speak for all institutions, many colleges ARE adjusting policies due to the FAFSA changes. The removal of the sibling discount has been problematic for many families, and financial aid offices are aware of this. Here's what I recommend: 1. Ask specifically about the school's "outside scholarship policy" in writing 2. Request an adjustment based on your multiple children in college 3. Apply for a "professional judgment" review, specifically citing the FAFSA changes Some institutions are more flexible than others, but most have some discretion. The most successful families are those who provide clear documentation and make specific requests. And yes, many schools prioritize protecting institutional aid for students who have shown initiative by earning outside scholarships. But policies vary widely, so you must ask each school directly.

Has anyone had success with any specific colleges keeping their institutional aid intact? I'd love to know which schools have more generous policies on this. We're looking at several private colleges in the Northeast, and this could really impact our decision.

i think this is all so unfair!!! my kid studied sooo hard and got 12k in scholarships and then our EFC went up because of it???? like punishing kids for doing well. the whole system is rigged against middle class families who make too much for pell grants but not enough to actually pay these crazy tuition bills

Update from my advising experience this year: schools are DEFINITELY becoming more accommodating about outside scholarships. Several universities have announced they're implementing a "no loan" policy for families under certain income thresholds, and many are specifically addressing the sibling penalty in their institutional methodology. The landscape is changing rapidly in response to the FAFSA changes. Key tip: when you receive your financial aid packages, compare them side by side with your daughter's outside scholarships listed. Then email each financial aid office with a specific proposal for how you'd like them to integrate the scholarships. Be direct but courteous. Many will work with you if you're specific about what you're asking for.