You earned it. Make sure you keep it.

Congrats on your local scholarship! Your hard work paid off, and people in your community want to support your college journey. But there’s something you need to know…

Sometimes, when you receive a local scholarship, your college may reduce the grants or scholarships they already offered you. This is called Scholarship Displacement.

• This happens more often than you might think.
• A recent survey found that about half of students with local scholarships lost some of their college scholarships from displacement.

The good news: You can prevent this if you stay on top of it. Here’s what to do:

1. Save Everything

Keep copies of all financial aid information from your college, including:

• Your financial aid offer letter
• Any emails or updates
• Details about grants, loans, work-study, and school scholarships

2. Call Your Financial Aid Office

Ask them:

• How would a local scholarship affect my financial aid package?
• Would any of my current grants or scholarships be reduced?
• Are my school-based scholarships renewable?
• What do I need to do to keep them (GPA, credits, etc.)?

If you hear anything concerning, contact your local scholarship provider right away.

3. Watch for Changes

After your local scholarship is sent to your college, you’ll probably get an updated financial aid package.

Compare it to your original offer:

• Was your bill (or your loans) reduced by the amount you expected? (Good)
• Or did your college reduce a grant or scholarship? (Problem)

If something looks off:

• Call the financial aid office
• Ask them (politely) to review and adjust

One solution: your college or your scholarship provider should be able to spread your scholarship over multiple semesters or years so you don’t lose money. Or, your school can apply your local scholarship to your loans, room and board, travel costs, books, equipment, or computer costs.

4. Ask for Help

If your college reduces your aid, contact your local scholarship provider right away. They may be able to:

• Advocate on your behalf with the college
• Help make sure your scholarship is used the right way

Remember, your local scholarship should:

• Reduce loans
• Lower what you or your family pay
• Cover unmet financial need
• NOT reduce your college scholarship!

Want to learn more? Here is a great article about displacement from Money.com. Finaid.com also has good information about displacement, including which states have banned the practice. This article from Scholarship America is also helpful.