federal work study & outside scholarships confusion

hi everyone! i'm an incoming freshman and had some questions about how federal work-study works when you’re awarded outside scholarships.

i received about $8k in outside scholarships for this academic year, and while i was initially excited, i saw some posts on this sub saying this might actually reduce your financial aid and lower it to the point where the scholarships wouldn't help me at all.

i've seen some people mention that outside scholarships replace student contribution and work study so people don't have to pay that (however it doesn't affect family contribution), but i am still a bit confused about how this works. for me, i was awarded $5k in fws for this year and i was planning to accept it and have been looking for jobs, but if the scholarships cancel out that money does that mean that i am unable to get a federally funded job? i understand that fws wages go directly to my bank account, not to tuition, so would it normally help me pay the $5k i’d otherwise cover throughout the year? and if my scholarship now covers that, does that mean i keep what i earn through fws? or would i be ineligible for fws now since my “need” is reduced?

sorry if this post is a bit convoluted! i'm just a bit confused about the situation and would really appreciate any sort of advice and clarification about how this works. thank you in advance, and i look forward to meeting everyone this fall! :)