<p>Here is my impression after reading most of this thread.</p>
<p>The problem lies primarily in intent of statement, not in wording.</p>
<p>In the media, stating that somebody got a “scholarship” to a need-based school is fine if the article is focusing on the struggles of being low-income, mentioning that that’s what makes it possible for them to attend that school, etc. and the family is okay with revealing their financial situation in that way. The same statement, in a piece meant to focus on the kid’s intelligence only and using this “scholarship” as further proof of the kid’s brilliance, is misleading and wrong.</p>
<p>When face-to-face with a relative/friend, stating that somebody got a “scholarship” to a need-based school makes sense if the person is revealing their gratitude towards being able to attend and means to reveal that they had financial need. The same statement, when meant to brag that “my kid is so smart, he/she is better than your kid”, is misleading and wrong.</p>
<p>Wording is mostly not the problem. “Scholarship” and “financial aid” can both mean either need-based aid, merit aid, or a combination thereof. Perhaps “scholarship” leans a bit more towards merit and “financial aid” leans a bit more towards need-based, but these are minute differences, and not worth parsing in a normal conversation.</p>
<p>If they are explicitly referred to as “merit scholarships” or “merit aid”, though, that’s misleading regardless of the context when talking about a need-only school. Sure, getting into Harvard implies that your kid has some merit intellectually, but getting a “merit scholarship” there (defined as a scholarship based off achievement in high school, not family finances) is impossible, and getting a scholarship there requires no extra merit, except perhaps that of succeeding in a low-income family. “Merit scholarship” is simply the wrong terminology when referring to a need-only school, and while one should probably just smile and nod, it is a mistake, plain and simple.</p>
<p>EDIT: Another note. When the school being discussed is NOT need-only, it’s not really worth noting whether a scholarship is merit or need-based. Giving incorrect information is still unethical, but leaving the information vague (such as “he/she got a great scholarship to X”) seems fine, though it gets messier if the context is such as that statement would seem to be bragging.</p>