Types of Student Financial Aid – Merit-based Student Financial Aid
Merit-based grants or what we know as “scholarships “, include monies and scholarships offered by the college or university and those awarded by outside organizations. Recipients of Merit-based scholarships typically have outstanding academic achievements, highest SAT or ACT scores, and sometimes for special skills, talents, leadership potential and other personal characteristics.
Scholarships and grants may be offered to those with certain specific group affiliation (such as YMCA, Boys Club, church affiliations, and religious education institutions etc.), dependents of alumni and such. Financial need of a student applicant or capability of parents to afford college for their dependents may not always be a consideration while awarding Merit scholarships . At many colleges, every admitted student is automatically considered for merit scholarships. At other institutions, a separate application process is required. Scholarships do not need to be repaid as long as certain minimum requirements are met.
Athletic scholarships are a form of merit aid that takes athletic talent into account.
Merit-based aid versus Need-based Student Financial Aid
Last several decades, the yearly cost if school tuition, room and board, in schools across the nation have been on the increase at alarming rate. It is difficult if not outright impossible for most Low-income and lower-middle income students to afford tuitions fees and other related expenses. Schools are under enormous pressure to keep quality of academic and sports programs up and with costs of running and maintaining these institutions spiraling up-words ever year they have no choice but to increase the costs of different components of the college education. To make it worse, in an attempt to help students meet the high, costly demands of college, schools have tried to increase merit-based grants, for students with outstanding academic position, involvement in organizations, or high athletic talent. Such actions on part of colleges and universities take funding away from low-income students who often do not meet these merit standards. In other words, funds for merit-based scholarships are taking away from the already small amount of federal aid available to low-income students who simply cannot pay for college without some kind of financial aid.
Back to What is Student Financial Aid or go on to read Need-based Student Financial Assistance Package
Financial aid may consist of one or a combination of Scholarships, grants, work study etc.. Read more about types of types of financial aid