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Building a national movement...
Inspired by the YesSheCanCampaign/DISSCHOLARED story and advocacy, Senator Troy Singleton introduced S985, legislation that outlaws scholarship award displacement at all public universities in the state of New Jersey. Governor Murphy signed the bill into law on September 24, 2021. In September 2021, Congressman Andy Kim and Congressman Mike Kelly introduced The Helping Students Plan for College Act, the first federal bill to address scholarship award displacement nationwide.
We are leading the movement to dismantle scholarship award displacement nationwide.
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We are working to dismantle
scholarship award displacement nationwide.
Scholarship award displacement is one of the root causes contributing to the student loan debt crisis. Need-based recipients cannot use their outside scholarship funds to fund their gap, causing many students to borrow more or drop out of postsecondary education. 100% of postsecondary institutions practice scholarship displacement in some form.
Learn more by visiting our database tab.
What is scholarship award displacement?
Did your financial aid package change before or after notifying your institution of outside scholarships/grants/aid?
Scholarship award displacement is when one form of student financial aid (i.e., federal scholarships, federal grants, state scholarships, state grants, external scholarships, private scholarships, military benefits, and/or other outside scholarships/grants/aid.) replaces another form of student financial aid (for example, an institutional scholarship or institutional grant). The outside scholarship can also impact a student's federal loan or work-study package, depending on the postsecondary institution's outside scholarship/aid policy. Each postsecondary institution has its own outside scholarship/aid policy.
Scholarship award displacement disproportionately impacts need-based recipients. It is important to note that postsecondary institutions may still practice scholarship award displacement even if a student does not have an over-award package based on federal guidelines. Postsecondary institutions are creating their own overaward policies, disguising them as federal overaward regulations.
Outside scholarships and grants are considered the following: federal scholarships, federal grants, state scholarships, state grants, external scholarships, private scholarships, military benefits, and other outside scholarships/grants/aid.
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State Laws Overview
Note: The federal government holds the authority to enact a comprehensive ban on scholarship displacement. An upcoming federal bill is set to be introduced soon.
*Maryland Public Higher Institutions - This law only protects undergraduate students at Maryland public higher institutions.
*New Jersey Public Higher Institutions - This law only protects students attending New Jersey public higher institutions. In February 2023, New Jersey introduced an amendment bill to expand the ban to all institutions in New Jersey.
* Washington Public and Private Higher Institutions - This law only protects students at Washington public and private universities who participate in state student financial aid programs. Note: This law does not apply to public community and technical colleges.
*Pennsylvania Public Higher Institutions - This law only protects students attending Pennsylvania public higher institutions.
*California Public and Private Higher Institutions - This law only protects students attending California public and private who qualify for the Pell Grant or state financial aid under the California Dream Act. Cal Grants are NOT covered under this law. Our organization has received several inquiries from families who have become victims of scholarship award displacement because their students received a Cal Grant. California higher institutions are eliminating institutional scholarships if a student receives a Cal Grant. We met with the California Financial Aid Commission, and they have told us they do not have the "legal authority" to tell higher institutions to stop practicing scholarship award displacement when it comes to the Cal Grant. Therefore, please be aware of this before accepting the Cal Grant. If you have any questions, please reach out to us.
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Americans collectively hold more than $1.7 trillion in student debt. Scholarship award displacement is one of the root causes of the student debt crisis.
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