Financial Aid Displacement Advisory
What is Financial Aid Displacement?
Financial aid displacement occurs when a student’s financial aid is reduced due to receipt of a private scholarship or other reasons identified in this advisory. This practice occurs in Texas and should be taken into consideration while applying for financial aid. The institution to which you are applying is providing in this application a list of recommendations describing how to maximize your financial aid and ensure that you are prepared when financial aid displacement occurs. You are encouraged to reach out to the institution to which you are applying to receive advice on how to avoid financial aid displacement. A student’s state-funded gift aid is most commonly revised or reduced because of:
- Additional gift aid received from a private source, such that the student’s total gift aid exceeds financial need or cost of attendance.
- Reduced cost of attendance as a result of dropped classes, a change in housing status, or withdrawal from the institution, among other causes.
- Failure to meet satisfactory academic progress requirements or other merit-based criteria for the student’s gift aid.
- A change in enrollment status that renders the student ineligible for certain gift aid programs.
- Failure to complete required administrative processes or submit documentation by established deadlines.
- A change in the student’s Student Aid Index as a result of verification, updates, and/or corrections to the student’s financial aid application which affects eligibility for some forms of gift aid or the amount of gift aid the student is eligible to receive.
How to Apply for Gift Aid
To apply for gift-aid, follow this link to our Scholarship Applications. Here, you will find a list of all institutional scholarships and applications.
- October 1 — be ready to submit FAFSA/TASFA.
- October 1 — apply for institutional scholarships (especially competitive ones like Ambassador).
- July 15 — Have scholarship applications submitted (for general scholarships.
- If selected for FAFSA verification — complete as soon as possible after you receive request (don’t wait).
- Enroll/register for classes early to ensure full-time status.
Fall- Early April | Spring- Early November
- If awarded outside scholarships, notify Financial Aid as soon as you receive your award letter.
- Keep in touch with LSCO’s Financial Aid Office if your financial situation changes.
- Complete and submit your Free Application for Federal Student Aid (FAFSA) or Texas
Application for State Financial Aid (TASFA) early — and every year
- LSCO requires FAFSA (or TASFA for those not eligible for FAFSA) for state/federal grants and institutional gift-aid. Apply as soon as possible!
- Explore and apply for all institutional scholarships at LSCO
- LSCO offers several internal scholarships (e.g. Ambassador Scholarship, Betty Joe Spence Scholarship, Chevron Phillips Scholarship, etc.)
- Search and apply for outside scholarships (private, community, employer, church, nonprofits,
etc.)
- LSCO encourages students to look beyond institutional scholarships: grants or scholarships from community organizations, foundations, local businesses, churches, employers, etc. can provide additional gift aid.
- Use high school counselors, local community groups, or internet searches to find opportunities.
- Stay enrolled full-time (or meet scholarship-specific enrollment thresholds) and maintain
good academic standing
- Many LSCO scholarships require full-time enrollment (e.g. 12+ credit hours) and a minimum GPA.
- If you drop below the required credit hours (or withdraw from courses) — or fail to meet GPA/academic progress standards — your scholarship or grant could be reduced or canceled.
- Submit all required documentation ASAP and follow up on any verification or additional
requests
- After submitting FAFSA/TASFA, if your aid is selected for “verification,” the Financial Aid Office may ask for tax return transcripts, W-2s, or other documentation — delays or omissions can hold up or reduce your aid.
- Be sure to “accept” (or decline) any aid offers via LSCO’s financial aid portal promptly — failing to accept may forfeit eligibility.
- If you receive private scholarships or other outside gift aid — communicate with LSCO
right away
- LSCO’s financial aid office needs to know about outside awards so they can coordinate total aid relative to your cost of attendance; this helps avoid over-award issues and the risk of displacing institutional aid.
- This includes scholarships from employers, community groups, religious organizations, etc
- Maintain full-time enrollment status
- Most scholarships require students to be enrolled full-time (12+ credit hours). Dropping a course during the semester could result in a reduction to your scholarship or repayment obligations.
- Meet all Satisfactory Academic Progress (SAP) standards
- Aid can be reduced or canceled if the student does not meet the following SAP requirements:
- Minimum 2.0 GPA requirement
- Aid can be reduced or canceled if the student does not meet the following SAP requirements:
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- Minimum completion rate of 70% or higher
- Maximum time frame (150% of your declared degree program)
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- Ensure accuracy in reporting Financial Data on applications, FAFSA/ Scholarship Apps:
- Inaccurate reporting can result in gift-aid changes later.
- Underreporting can lead to reductions or cancellation of funds.
- Do not exceed financial aid cost-of-attendance limits
- Total aid (including scholarships) cannot exceed the cost of attendance.
- Over-awards may result in reduced grants.
- Avoid retaking classes unnecessarily
- Repeating courses may not count toward enrolled credits and can affect aid.
- Report enrollment at only one college
- Students receiving Pell Grants or certain state awards at multiple institutions may face reductions or repayment.
- Communicate with the financial aid office before making changes
- Always check with aid advisors before:
- Dropping classes
- Changing majors
- Accepting outside scholarships
- Always check with aid advisors before: