<p>Hi,
I was looking the financial aid section fo the US news and World Report ultimate college guide and for each school it offers separate statistics on "merit aid" and "gift aid such as scholarships and grants."</p>
<p>I notices that some schools reportedly offer very little in merit aid, but supposedly offer a good deal of money for "gift aid." The book fails to offer a good definition that distinguishes one form the other. Does anyone know what they mean and how they differ?</p>
<p>Could it be that merit aid is not based on financial need, whereas “gift aid” is based on financial need. It does get confusing, brcause on FA award letters (need-based) they sometimes refer to money that does not need to be repaid as scholarship and sometimes as grants. Then they list “self-help” aid, which is another term for loans.</p>
<p>I have access to the online edition. USNWR’s glossary has some (long and rambling) definitions</p>
<p>Merit Aid: “awarded to students who have demonstrated special ability or talents, regardless of their need for the money.” They mention scholarships in connection with merit aid but not grants.</p>
<p>Grant: “A gift of money.” and “The word is often used interchangeably with scholarship.” The grants they mention are all need-based grants.</p>
<p>Gift Aid: “Money that students can use to cover their education expenses that does not have to be repaid.”</p>
<p>USNWR is a bit sloppy in their terminology, but that’s probably because on the college landscape these terms tend to be mixed and matched. In the financial aid awards I am currently reviewing for my D I have seen merit aid referred to as both “grant” and “scholarship” and need-based aid referred to as both “grant” and “scholarship.”</p>
<p>Whatever terms the college uses it is important top distinguish between merit aid and need-based aid and to be aware of any conditions that are attached, such as minimum GPAs.</p>
<p>thanks standrews. I appreciate your posting - I still think it’s tough to figure out the difference. For example - lehigh says they give out very little merit aid, but rather a good deal of “gift aid” which includes scholarships. </p>
<p>Merit aid is any aid that does not depend on your ability to pay for college. A person whose parents make millions a year can get merit aid as easily as a person in foster care (assuming they’re otherwise identical, of course). </p>
<p>Gift aid is simply any aid that you never have to pay back. Merit aid is almost always going to be gift aid (what’s the point otherwise?), but some gift aid is given out based on financial need.</p>
<p>“Merit Aid” is not need based. You don’t have to submit financial aid forms to receive it, and it should be renewed each year your child is at the school, as long as they continue to maintain the minimum GPA and other academic conditions of the scholarship. Schools typically offer merit aid in order to entice top candidates to the school regardless of their financial situation. Your child may have to fill out extra forms to apply for these types of scholarships, or they may just be a pleasant suprise in the acceptance package. </p>
<p>Grant aid is need based - you must submit financial aid forms each year for it to be renewed. Unlike merit aid, there are no guarantees about it. It is quite possible for your child to receive a very generous grant award in the first year and then for that to evaporate in future years based on your changing financial situation. Or, as in my case, it’s possible for your child to get no grant aid at all (just merit aid, tyvm, which we appreciate greatly) until a sibling is in college and the family EFC is split two ways instead of only one.</p>
<p>Please check with EACH school to verify this. Our DD received a GRANT from her school her freshman year. At that time, she had a sibling in college. We inquired about the continuation of this grant in subsequent years. Her particular grant at HER school was continued based on maintaining a GPA of 3.0. Even when her EFC doubled…she still continued to receive the grant.</p>
<p>Some schools call THEIR institutional free money “grants”.</p>
<p>Check with YOUR child’s school to see what the policy is regarding renewal of grants. If it’s demonstrated need…that is one thing. But it might be GPA…or it could be both.</p>
<p>Nope - according to the US News book - need based aid is a THIRD category. So - they have need based, merit and grant. They say grants include scholarships (as opposed to finanical aid). I get what need based is - my question is “what’s the difference between merit and grant?”</p>
<p>I guess it’s a mystery to most everyone else as well…</p>
<p>Think of merit aid as a subset of grant aid. Grant aid can be given to people because of either achievements or financial need. Merit aid is the first of the two: grant aid given to people for achievements. For merit aid, you have to do something or be something in order to receive and keep it; for grant aid, all you have to do is fall under a certain income bracket or demonstrate some kind of financial need for assistance. The main thing you have to know is that they’re all free; you don’t have to repay them, ever.</p>
<p>I would add, check to see what aid: merit, grant, scholarship, gift is for one year and what monies will continue on for more than a year and what monies are dependent upon a certain GPA. It’s all “free” money, but different scenarios have different implications for future years. That to me as a parent is most important. Most of the money in finaid letters called “merit” for my kids were basically a scholarship renewable for 4 years and contingent upon a certain GPA. Most of the money in finaid letters called grant or gift was for one year only. YMMV.</p>
<p>Merit aid is earned, need-based aid is not.</p>
<p>Loans have to be repaid, gift aid (aka, a grant) doesn’t.</p>
<p>Thus, financial aid can be a merit-based loan (can’t say I’ve ever seen that, though), a merit-based grant, a need-based loan, or a need-based grant.</p>
<p>I would also add in a third orthogonal category for work study. It’s neither a gift nor a loan.</p>