Their net price calculator seems to indicate that they do, but I’ve never heard of any college doing this so I thought I’d verify it here.
For example, if Oberlin determines that a student needs $20,000 to meet need but also gives that student a $10,000 merit scholarship, will the student receive $30,000 in total aid?
No, they will meet need after your merit scholarship. If you bring outside scholarships though, they will not reduce your need grant. At least that is my experience w/ my daughter.
My D received more combined merit and aid at Oberlin than at other schools. Merit appears to be separate. She was told it will always be there, even if enough income reduces all financial needs.