When I won my first scholarship for college, I was ecstatic. I proudly walked into the financial aid office and turned over my check to be deposited into my account. A few days later, I pulled up my account online to view my financial aid package and noticed that one of my college grants had been reduced. Livid, I called up the financial aid office to find out why. That’s when I learned about a little-known rule called the Federal Overaward Regulation (34 CRF 637.5). Under this provision, outside scholarships are considered resources and can reduce your financial aid dollar-for-dollar. In fact, colleges are required to reduce your aid package whenever the total from all resources exceeds the school’s tuition costs by more than $300.