Let's talk about something that catches a lot of students off guard. You win an outside scholarship. You report it to your school. And then your financial aid package gets smaller. That's called scholarship displacement, and it's allowed in most states. Here's how it works. When your college learns about an outside scholarship, it may adjust the rest of your aid. If it lowers your loans, great. That's the best outcome. But sometimes it lowers grants or other aid you'd never have to pay back. When that happens, the scholarship you worked for ends up replacing free money instead of adding to it. A few states limit the practice, including Maryland, New Jersey, Pennsylvania, Washington, and California. In Texas, a 2025 law, Senate Bill 2995, requires colleges to link students to a state advisory that explains displacement. It's a step toward transparency, but it doesn't stop the practice. So here's what to do this week, before you win anything: 1. Email your financial aid office and ask: "If I win an outside scholarship, which part of my aid would change? Can it reduce my loans before my grants?" 2. Read the terms of any scholarship you're applying for. Some providers have rules about how their money can be used. 3. Save every award letter so you can compare your package before and after. This is exactly why Spark-ED exists. Winning scholarships is only half the work. Keeping the full value of them is the other half, and most students never hear about it until it happens to them. If you've already been through displacement, share what happened here so the rest of us know what to expect from different schools. Tell me in the comments: has your aid ever changed after you won a scholarship? 👇 You earned that money. Make sure it goes where it should.