If you are applying for college financial aid, then you may be wondering what the differences are between merit-based and need-based financial aid. The primary difference between these two types of financial aid is that merit-based scholarships, unlike need-based financial aid, are awarded to students based on academic or other merit rather than demonstrated financial need. In addition, while need-based financial aid can take many forms , such as grants, scholarships, work-study positions, and loans, merit-based financial aid is typically only awarded in the form of grants and scholarships.
Colleges, of course, will consider academic merit when deciding whether or not a student should be admitted. Instead of evaluating financial need, merit scholarship sponsors can consider any combination of merit-based factors. Some sponsors of merit scholarships only evaluate academic performance, in the form of grade-point averages, SAT or ACT scores, or class rank.
Other sponsors may consider your academic performance in addition other criteria such as teacher recommendations, your region or state of residence, high school of attendance, community involvement, level of dedication to a specific field of study, gender, race, or ethnic background.
Especially if the scholarship sponsor is a religious or cultural organization, or an organization dedicated to a certain field of study such as math or art, scholarship applicants must be significantly involved in the activities of that group to potentially receive any student assistance.
Need-based financial aid and merit scholarships also differ in how they are funded. Much need-based financial aid is issued by the government, while merit-based aid is awarded by colleges or by private sponsors. Almost all financial aid provided by federal and state governments, with few exceptions , is need-based financial aid. The U. Applying for need-based financial aid is relatively straightforward, typically only requiring completion of the FAFSA, while applying for merit-based aid can be a time-consuming and lengthy process.
Some colleges automatically consider students for merit scholarships, or require submittal of only a very simple application; applying for other private scholarships, on the other hand, can be quite onerous.
Private scholarship sponsors may require candidates to write essays, sit for interviews, and perhaps more. Many otherwise qualified students are loathe to spend significant amounts of time applying for scholarships with paltry monetary awards, and instead choose to prioritize those merit awards for which the application process is the simplest.
Merit scholarships are frequently, though not always, awarded on a one-time basis, while need-based financial aid is available to students for every year that they attend college. Students are required to complete a FAFSA for every year that they wish to receive federal student assistance. Need more info? Learn more about merit scholarships from the experts at Edmit.
A covered educational institution's name or logo on the Edmit platform is not an endorsement by the covered educational institution of SoFi's student loan products. Edmit may receive compensation from SoFi on a per-funded loan basis.
SoFi does not guarantee the accuracy of information provided by Edmit, its affiliates or subsidiaries. Enrollment in Edmit does not guarantee eligibility for a SoFi loan product. At some institutions, you will be considered for merit-based financial aid "automatically" after you apply for admission and are being considered for acceptance.
However, some institutions will have separate applications, with their own deadlines and requirements e. This is especially true for bigger scholarships and awards. Although most merit-based aid comes directly from colleges and universities, there are some state programs that offer merit-based aid.
Along the same lines, some outside scholarship organizations will offer scholarships in recognition of student achievements, so make sure to read any scholarship guidelines closely. When making your college list, create a separate column for those schools that offer merit-based financial aid. In the end, it could play a role in your ability to attend a particular institution and avoid, or at least lessen, your student loan debt. Read more on how we are here to help you. Log in. College Savings Plans U.
Plan Prepaid Tuition Program U. Keyword Search. Fred US English. Tessa South African. How to say merit-based in sign language? Numerology Chaldean Numerology The numerical value of merit-based in Chaldean Numerology is: 4 Pythagorean Numerology The numerical value of merit-based in Pythagorean Numerology is: 6.
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Tanya Zuckerbrot : However, these claims may have some merit based on what we know about fat and digestion. Makan Delrahim : By understanding these competitive dynamics, we can understand how the market leaders have monopoly power, how they exercise that monopoly power and whether the source of that power is for merit-based competition or the source of that power is exclusionary. Select another language:. Please enter your email address: Subscribe.
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