<p>i may be misinformed here, but i've recently heard that if you get merit aid, it's taken out of your need-based aid, so the amount you pay remains the same. is this true? and if it is, what's the point of getting a merit scholarship if you don't pay any less? (i was wondering because i'm a high school junior looking for safeties and i though if i applied to places that gave merit they could be financial safeties, but maybe they're actually not...)
thanks for your feedback :)</p>
<p>Whether or not merit aid reduces your need-based aid depends on the policy of the college/university awarding it. Some institutions will “stack” the aid (need + merit = total). Some won’t. Some will use merit aid to reduce aid awarded as loans or as work-study. Some will offer merit aid to students who don’t qualify for any need-based aid. You have to ask each institution how they handle it.</p>
<p>Some people don’t qualify for need based aid, so merit aid is good for them. And for students who do have need, many schools do not meet full need so merit aid can be useful for them. Also many schools include loans in their aid and merit money will reduce the loans. </p>
<p>Merit aid does reduce need, but unless a school promises to meet full need without loans (most don’t) merit aid can still be hugely beneficial.</p>
<p>I have seen that happen. A student I know was offered a FA award that was need-based, and then when the college subsequently gave him a merit-based award they reduced his need based aid. That would have still been a plus from him if the school had replaced part of his loan amount with the merit-based grant, but no. They reduced a need-based grant with the merit-based grant – so it was all a wash.</p>
<p>His parents were a little perturbed because they felt they’d been misled in that process. The student ended up attending another college.</p>
<p>Schools that can afford to have been using merit aid to reduce loans before simply replacing one type of grant with another - but in these economic times this may not always happen. I still encourage students to work toward the highest possible merit award - by raising test scores etc. jr/sr. year. The school may alter other policies in meeting aid but if you meet the renewal requirements for your scholarship that money will be there for subsequent years. Other programs are more vulnerable to economic pressures.</p>
<p>It is very school specific how the merit aid will affect any financial “need” aid. In my D1’s case (100% meets need - no loans) the merit aid in the FA package from the school pretty much cancelled an equal portion of the financial aid BUT any additional merit aid was credited to the amount the student was expected to contribute through summer & school year earnings. Any excess (after student earnings were fully covered) was then sort of a bonus to the school (I am NOT complaining about this it seems only fair). Additionally for freshman year I requested some allocation for a new computer (which she really needed) and the school allowed for that out of the outside scholarship too. It is usually a good idea to pursue scholarships that you have a good shot at winning (not to blindly apply to everything).</p>
<p>The way they “covered” student earnings with scholarship did not preclude my D1 from working on campus but netted less out of pocket.</p>
<p>Of course, for those who don’t get “need”, anything in the merit department helps.</p>
<p>If you keep your grades there is less variability with merit aid than FA which can go up or down with income.</p>
<p>*i may be misinformed here, but i’ve recently heard that if you get merit aid, it’s taken out of your need-based aid, so the amount you pay remains the same. is this true? and if it is, what’s the point of getting a merit scholarship if you don’t pay any less? *</p>
<p>Most schools have little aid to give, so getting merit scholarships can really help reduce your costs.</p>
<p>If all/most schools met need, then your concern would be valid, but since most schools do NOT meet need and some people don’t qualify for FA, then merit aid can be wonderful.</p>
<p>Merit aid is really great for safety schools and match schools because those schools often do NOT meet need and only give limited FA to very needy students.</p>
<p>Merit aid can also reduce the number of loans that are in your FA package.</p>
<p>Many top schools do NOT give ANY merit aid…only need-based aid.</p>
<p>What schools are you applying to?</p>
<p>(i was wondering because i’m a high school junior looking for safeties and i though if i applied to places that gave merit they could be financial safeties, but maybe they’re actually not.</p>
<p>VERY, VERY few safeties give much need-based aid, so merit aid is often a way for these schools to be affordable. </p>
<p>For instance, if your FAFSA EFC is $8k, then you won’t qualify for any federal grants, just small student loans. So, at many safety schools, you would have a huge gap. But, if you were to get a full tuition scholarship for your stats, then with a student loan and your family’s EFC, the school would likely be affordable.</p>
<p>^my top schools are swarthmore, brown, and oberlin (i believe all of these meet full need) and the safeties i’m looking at are american and ithaca, so i was wondering how merit aid comes into play there- i guess those schools probably don’t meet full need so that’s why merit aid would be good.</p>
<p>thanks for your feedback everyone! i guess i need to talk to specific schools to get more information, but i’m a little less confused now :)</p>