‘August Surprise’: That College Scholarship You Earned Might Not Count
Jon Marcus, The Hechinger Report
It's time for the "August surprise," when colleges and universities take private scholarship money and subtract it from institutional grants. Half of colleges, in fact, reduce their offers of financial aid when students win outside money.
Know as "scholarship displacement," the practice is now coming under fire. Lawmakers in five states have passed restrictions, with similar legislation pending in others. A proposal in New Jersey would widen that state’s ban to private, not just public, universities and colleges.