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.

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