What exactly is merit aid and how can it help with college costs?

I'm starting to look into how I'll be able to afford college and I've heard a bit about merit aid, but I'm still kind of confused about what it actually is. Does it mean scholarships that are based on your grades and achievements or something else entirely? How do colleges decide who gets merit aid and are there specific things I should be doing now to improve my chances of getting it?

Also, do all colleges offer merit aid or is it only certain ones? I'm interested in schools both in-state and out-of-state, so understanding how this works could really help me plan my applications. Plus, any tips on how merit aid might work differently depending on the institution would be amazing!

Indeed, merit aid refers to financial aid awarded based on a student's academic, artistic, athletic, or other merits, rather than financial need. It's like a scholarship that colleges provide based on attributes that they value, such as high grades, standardized test scores, and outstanding talents in music, sports, or the arts.

Colleges determine who gets merit aid based on their individual criteria. They often have a pool of money designated for merit aid and decide who receives these funds based on their comparison of applicants and the strengths they bring. Improving your grades, challenging yourself with rigorous courses, and excelling in your extracurricular activities are good ways to boost your chances of getting merit aid.

It's important to note that not all colleges offer merit aid. Usually, private colleges are more likely than public colleges to provide merit aid since they are typically more expensive and aren't as reliant on state funding. Some colleges, particularly those considered "top tier," rely more on providing need-based financial aid and do not offer any merit aid (take Harvard, for example).

As for differences by institution, it definitely exists! Some schools may offer robust merit aid packages to attract the best and brightest students while others may offer smaller or no merit aid scholarships. Each institution has its own policy, so it would be best to research each school's financial aid office website or contact them directly to get the most accurate information. For example, University of Arizona is known for offering aggressive merit aid scholarships, while schools in the California state system traditionally do not offer much in terms of merit aid.

While doing your research, remember that merit aid can be a significant help in offsetting costs, but it is just one piece of the financial aid puzzle. Focus on finding the right fit and building a strong application, while also keeping an eye on the broader financial picture.