What is Award Displacement?

It's one of the best days of your life! You got accepted to the college of your dreams and they are also giving you a lot of scholarship money. Even better, you earned a private scholarship for $5,000 - or is it? All of a sudden you find out the college has taken back some of the gift aid (scholarships) they had originally given you. What's going on?
When a student who is receiving need-based financial aid earns a private scholarship, it reduces the student’s demonstrated financial need. The college’s financial aid office must then reduce the student’s need-based financial aid package to compensate, since the student is considered to be “overawarded.” In other words, they think they've given you too much money for college. Federal regulations require colleges to reduce the need-based financial aid package to compensate.
Colleges calculate financial need using the following formula:
Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need
The problem is, cost of attendance does not take into account things that are required for your major, such as a special computer or software, internet access, or technical equipment. It also doesn't include special needs services, such as daycare expenses for a child.
There are ways to work around award displacement and most colleges will do whatever they can to help you. Some of the ways the college can help are:
If you're a Bootstraps recipient and you think award displacement might happen to you, call us ASAP - 720-618-8924. We will discuss possible solutions to make sure this doesn't happen.
When a student who is receiving need-based financial aid earns a private scholarship, it reduces the student’s demonstrated financial need. The college’s financial aid office must then reduce the student’s need-based financial aid package to compensate, since the student is considered to be “overawarded.” In other words, they think they've given you too much money for college. Federal regulations require colleges to reduce the need-based financial aid package to compensate.
Colleges calculate financial need using the following formula:
Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need
The problem is, cost of attendance does not take into account things that are required for your major, such as a special computer or software, internet access, or technical equipment. It also doesn't include special needs services, such as daycare expenses for a child.
There are ways to work around award displacement and most colleges will do whatever they can to help you. Some of the ways the college can help are:
- Calculate your actual cost of attendance which includes tuition, fees, books and supplies, room and board, transportation, insurance and other personal expenses. The posted COA on a college's website uses average figures to calculate expenses. If a college uses your actual expenses, many times the COA is higher and you can avoid some or all displacement.
- Some colleges will reduce the amount of self-help aid (loans, work study) rather than your gift aid.
- Some will use "professional judgement" to recalculate your EFC considering factors such as medical expenses or use current year income.
- Upon request, your scholarship can used for a future academic year or for summer school.
- We will help you negotiate with your college scholarship office so you don't lose your institutional aid.
- If necessary, we'll reimburse you for some educational expenses.
If you're a Bootstraps recipient and you think award displacement might happen to you, call us ASAP - 720-618-8924. We will discuss possible solutions to make sure this doesn't happen.