Scholarship Displacement Explained

Dec 9, 2011

Scholarship Displacement Explained

by Suada Kolovic

Here at, we make a point to advocate the importance of funding your college education the right way – for free! – and while financing your higher education solely from scholarships is an amazing feat, there is a factor to consider: scholarship displacement.

If you don’t know what scholarship displacement is, you’re not alone. Believe it or not, winning a scholarship may not be the end-all be-all when it comes to paying for school because they can complicate the financial aid package offered by your intended university. Why? When a student wins a scholarship, the college may reduce the student’s need-based financial aid package to compensate. For example, say a university offers a student a $15,000 grant and an additional $15,000 loan to cover the cost of attending. If the student were then to win a scholarship for $15,000, the college could retract its $15,000 grant. Colleges call this an over-award and the scholarship providers call it displacement.

Although this may seem discouraging, it shouldn’t dissuade you from applying to scholarships altogether. Instead, do your homework, speak with your admissions counselor and know where your intended college stands when it comes to their scholarship policies. If you’re brining a lot of scholarship dollars to the table, you have options. Every college is different and has their own guidelines when it comes to outside scholarships. If one university doesn’t allow you to put those scholarship dollars to other costs – loans, books, room and board, etc. – enroll at one that does. You could also enlist the help of the scholarship sponsor: Some scholarship providers may have a lot of clout with the college, especially if their scholars make up millions of dollars of funding to the college.

If you have any additional questions about scholarship displacement, don’t hesitate to ask us!

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a free college scholarship search today, then apply and win! It’s that easy!


Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!

If you can read this, don't touch the following fields

Comments (0)
SimpleTuition 300x250

Recent Posts


ACT (20)
Advanced Placement (24)
Alumni (17)
Applications (90)
Athletics (17)
Back To School (80)
Books (67)
Campus Life (471)
Career (115)
Choosing A College (65)
College (1024)
College Admissions (255)
College And Society (330)
College And The Economy (379)
College Applications (152)
College Benefits (292)
College Budgets (219)
College Classes (451)
College Costs (501)
College Culture (609)
College Goals (389)
College Grants (54)
College In Congress (90)
College Life (589)
College Majors (227)
College News (619)
College Prep (168)
College Savings Accounts (19)
College Scholarships (162)
College Search (122)
College Students (489)
College Tips (133)
Community College (59)
Community Service (40)
Community Service Scholarships (28)
Course Enrollment (19)
Economy (122)
Education (29)
Education Study (30)
Employment (42)
Essay Scholarship (39)
FAFSA (55)
Federal Aid (101)
Finances (70)
Financial Aid (418)
Financial Aid Information (60)
Financial Aid News (58)
Financial Tips (40)
Food (45)
Food/Cooking (28)
GPA (80)
Grades (91)
Graduate School (56)
Graduate Student Scholarships (21)
Graduate Students (65)
Graduation Rates (38)
Grants (62)
Health (38)
High School (134)
High School News (76)
High School Student Scholarships (185)
High School Students (320)
Higher Education (115)
Internships (526)
Job Search (179)
Just For Fun (122)
Loan Repayment (41)
Loans (50)
Military (16)
Money Management (134)
Online College (21)
Pell Grant (29)
President Obama (24)
Private Colleges (34)
Private Loans (20)
Roommates (100)
SAT (23)
Scholarship Applications (165)
Scholarship Information (179)
Scholarship Of The Week (272)
Scholarship Search (221)
Scholarship Tips (89)
Scholarships (405)
Sports (62)
Sports Scholarships (21)
Stafford Loans (24)
Standardized Testing (46)
State Colleges (43)
State News (36)
Student Debt (86)
Student Life (513)
Student Loans (142)
Study Abroad (68)
Study Skills (215)
Teachers (94)
Technology (111)
Tips (514)
Transfer Scholarship (17)
Tuition (93)
Undergraduate Scholarships (37)
Undergraduate Students (155)
Volunteer (45)
Work And College (83)
Work Study (20)
Writing Scholarship (19)


529 Plan (2)
Back To School (382)
College And The Economy (530)
College Applications (268)
College Budgets (355)
College Classes (585)
College Costs (779)
College Culture (958)
College Grants (135)
College In Congress (138)
College Life (1020)
College Majors (346)
College News (973)
College Savings Accounts (57)
College Search (404)
Coverdell (1)
FAFSA (118)
Federal Aid (138)
Fellowships (24)
Financial Aid (719)
Food/Cooking (79)
GPA (281)
Graduate School (109)
Grants (75)
High School (561)
High School News (264)
Housing (175)
Internships (580)
Just For Fun (242)
Press Releases (18)
Roommates (143)
Scholarship Applications (232)
Scholarship Of The Week (351)
Scholarships (626)
Sports (79)
Standardized Testing (62)
Student Loans (228)
Study Abroad (62)
Tips (868)
Uncategorized (7)
Virtual Intern (569)