Scholarship displacement is when a student's institutional, state, or federal financial aid is reduced due to the student's receipt of a private scholarship.

State student financial aid programs include the Washington College Grant, the College Bound Scholarship, and the Washington State Opportunity Scholarship.

The Washington Student Achievement Council (WSAC) provides strategic planning, oversight, advocacy, and programs to support increased student success and higher levels of educational attainment in Washington.  The agency's responsibilities include administration of student financial assistance programs and student outreach.  

The WSAC must ensure that postsecondary institutions that participate in state student financial aid programs have a gift equity packaging policy allowing for a student who receives a private scholarship to receive up to 100 percent of the student's unmet need before any of the student's federal, state, or institutional financial aid is reduced.  This requirement does not apply to public community and technical colleges.