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<p>I think that you understand how this works. One thing to keep in mind is % of need met (and what % are grants, and % are in the form of loans). There are many private schools that meet, on average, 65% (just an example) of financial need. They might offer a large merit aid award, but if the student does not meet the gpa requirement, either the student has to leave the school, or the parent needs to pay more. If the parents are not wealthy there might be a huge gap between financial need and what the college offers in financial aid. This is a pitfall that I would definitely want to avoid as a parent. If the parents have such a high efc that there is not going to be any financial need, one might as well try to get merit aid. If parents have some financial need, then % of need met becomes more important.</p>