Earlier this summer a new law to end the practice of scholarship displacement for students pursuing a higher education was signed by Governor Tom Wolf.

State Rep K.C Tominlson (R-Bucks), says scholarship displacement occurs when a student goes above and beyond to earn private scholarships to supplement their financial aid, only to have their school deduct the amount of that scholarship from their financial aid package. In essence, the students were doing extra work but not receiving any additional benefit.

Act 55 of 2022 prevents colleges from reducing their aid package for an enrolled student who receives a private scholarship. 

The law however does not apply to student’s whose financial aid sources exceed the amount of attendance, and students who may be an athlete may have their aid reduced to comply with rules and restrictions of the school or  athletic association.

The law makes Pennsylvania the fourth state in the country to eliminate the practice of colleges and universities reducing a student’s financial aid package when the student receives a private scholarship.

State Rep. Todd Polinchock (R-Bucks), authored the house version of the measure.

“We need to put an end to punishing students who achieve excellence and seek private scholarships. Students and their parents deserve to lock in a student’s financial aid award from the very beginning despite additional scholarships,” said Polinchock. “The rising price of colleges and universities makes this practice even more discouraging for our students who wish to seek higher education. Our children should be given every opportunity to succeed and not be penalized for their hard work,” he said when introducing the bill in May.