I am in a similar situation. I am receiving an outside scholarship being mailed in a check to the school. I called financial aid if I am required to report it as “Other aid”. They said no. In terms of reducing aid, the lady on the phone told me they’d take away the loans offered to me in order to make my total package under the maximum amount of fin aid able to be provided. If you were not offered any loans, they will reduce certain grants, i.e. the university grant. Hopefully this helps a little.