<p>I got some merit scholarships to a school that meets full need (and I qualify for need), and it seems like they just subtracted the value of the merit scholarships from my grant money. I knew that outside merit scholarships would take away from aid, but institutional scholarships too? I don't understand the point of merit scholarships then--aren't they supposed to entice students the schools really want?</p>
<p>Yes, and they do if the student doesn’t have need or need is low enough for merit to reduce the EFC. Merit aid, in the end, benefits upper middle class kids.</p>
<p>Merit also provides a guarantee if there is a chance your financial situation will change and your won’t be eligible for need based aid in all the future years. There are many times this could happen.</p>
<p>I think the point is that they’re meeting your full need. You’re right that from your point of view, whether its merit money or need money doesn’t make a difference. As the prior poster pointed out – it’s different commitments. Merit money is there no matter what.</p>
<p>From the school’s point of view, there may be different pockets – so many dollars for merit, so many dollars for need. To the extent they could give you merit money, it probably freed up need-based money for someone else.</p>