Merit aid.
In plain English
Merit aid is scholarship money a college or outside group gives based on achievement rather than financial need. Common bases include strong grades, test scores, athletic or artistic talent, or leadership. Unlike need-based aid, merit aid does not depend on your family's income or your Student Aid Index, so a high earner's child can still receive it. Like grants and scholarships generally, merit aid is gift aid you do not repay. Some merit awards renew each year only if you keep up a required GPA, so the conditions matter as much as the amount.
01Why it matters
Merit aid is free money that lowers your net price without a loan attached, and chasing it at schools where you're a strong applicant can change which college is actually affordable.
02The math, step by step
A student with a strong GPA applies to a college where their grades sit above the typical admitted student. The school offers a $15,000-per-year merit scholarship to attract them, renewable as long as they keep a set minimum GPA. That award lowers their net price every year with no repayment.
03What this is NOT
Merit aid is not based on financial need. It rewards achievement like grades or talent and can go to students from any income level. Need-based aid, by contrast, depends on your finances and Student Aid Index.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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