Scholarship Stacking and Scholarship Displacement

Every college handles outside scholarships differently. Some colleges allow full scholarship "stacking," meaning that all outside scholarships "stack" on top of the scholarships and grants the college offers, and will even issue a refund if the student earns more in scholarship funds than are needed for the semester or year. At the other end of the spectrum, full scholarship "displacement" happens when a college reduces its own scholarships dollar-for-dollar when a student earns outside scholarships. Policies on scholarship stacking and displacement vary from college to college. The graphic above shows some of the most common policies regarding outside scholarships. It is crucial to understand the policy of the college your student attends, or the policies of the colleges your student is considering. If your college falls within the first four positions (from left to right) on the spectrum in the graphic, it is financially advantageous for your student to apply for outside scholarships. Even if the college practices need-based or full-scholarship displacement, outside scholarships can still benefit your student both financially and through the other benefits some scholarships provide to their winners. Additionally, various strategies can be employed to mitigate the negative financial impacts of scholarship displacement.

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