Merit-Based Scholarships

Fret not if your federal financial aid award is insufficient to cover much of college costs — you can explore other forms of aid that can also help care for tuition fees and others.

And one of your options is a merit-based scholarship.

Merit aid is a form of financial aid for college students that does not consider financial need. Instead, it takes into account one’s academic achievements and extracurricular participation.

Other than the GPA and test scores, merit aid may also be awarded based on a student’s talent or skill, such as in athletics or in the arts.

Around 22% of all undergraduate students in the US received merit-based aid, according to ThinkImpact.

There are more merit awardees at private colleges and universities than at public institutions — in the same academic year, 25% of students at private schools received merit aid, while only 18% of students at public schools did.

Merit aid can come in the form of a:

• Scholarship
• Grant
• Tuition discount

Of those, merit-based scholarships are some of the most common forms of merit aid.

Why Do Colleges Offer Merit Aid?

Colleges and universities offer merit-based aid to reduce educational costs.

More importantly, higher education institutions offer them to encourage high-performing high schoolers to apply to them.

With many accepted students having high GPAs, the reputation and selectivity level of a college increases.

Offering merit financial assistance also helps make sure that academic excellence is maintained among students given that the vast majority of merit-based aid requires awardees to maintain a certain GPA to remain eligible for them.

Like need-based aid, merit aid is designed to lower steep college costs, which is the reason why up to 34% of young adults who aren’t in college are not pursuing an undergraduate degree.

However, merit aid is offered to students based on the strength of their college application.

College admissions officers like students with strong applications because they are more likely to succeed in college. Also, they are more likely to contribute something positive to the campus community.

By offering merit aid, colleges and universities can entice promising students to choose to matriculate in them rather than in other institutions that have also given them an offer to enroll.

Other than colleges and universities, merit aid can also come from the following sources:

• Non-profit organizations
• Private businesses and companies
• Other scholarship providers

It’s important to mention that some merit aid types are exclusive to certain schools within a college.

These scholarships are referred to as departmental merit aid, and they are commonly available to students who get admitted to some of the most competitive programs a merit aid-awarding institution has.

For instance, Southern Methodist University offers the following departmental merit scholarships:

• Dedman College of Humanities and Sciences
• Edwin L. Cox School of Business
• Meadows School of the Arts

On the other hand, the University of Iowa has additional merit scholarship opportunities in these schools:

• Business
• Education
• Engineering
• Liberal arts and sciences
• Nursing
• Pharmacy
• Public health

According to US News, the following institutions are the most generous in giving merit-based aid:

Institution	Percentage of Merit Aid Recipients
Otis College of Art and Design	95%
Central State University	87%
Hope International University	77%
Ashland University	76%
Webb Institute	74%
Loras College	69%
Baker University	60%
Fairfield University	60%
University of Detroit Mercy	60%
Utah Tech University	59%
Keiser University	58%
Franklin W. Olin College of Engineering	56%
Samford University	56%
Gonzaga University	53%
The New School	53%
Trinity University	53%
University of Denver	53%
Birmingham-Southern College	51%
Hillsdale College	50%

How Much Can Merit Aid Be?

The average amount of merit-based aid can range anywhere from $1,000 per year at public and state colleges and universities to as much as $35,000 per year.

The average merit aid award nationally is set at $5,000 per year.

Needless to say, how much merit aid you can get will depend on which institution you are attending.

At the University of Hawaii at Manoa, for instance, merit scholarship awards range anywhere from $2,000 to $4,000 per year for first-time degree-seeking students for four years.

Additionally, those with a 3.8 GPA upon application to UH Manoa automatically qualify for merit aid.

The amount of merit awards at Gustavus Alphonsus College, on the other hand, can be anywhere from as low as $2,500 per year to as high as $42,500 per year, depending on the program.

Meanwhile, at Providence College, merit aid awards can range from $23,000 to $38,000 per year.

The following are some of the top merit-based scholarships in the US:

Scholarship Program	Award Per Year
Buick Achievers Scholarship	$25,000
Presidential Scholarship	$25,000
National Honor Society Scholarships	$3,200 to $25,000
Coca-Cola Scholars Foundation	$20,000
Dell Scholars	$20,000
Barry Goldwater Scholarship	$7,500
Udall Undergraduate Scholarship	$7,000
Foot Locker Scholarship	$5,000
HOPE Scholarship	$3,000 to $3,500
Equitable Excellence Scholarship	$2,500
National Merit Scholarship Program	$2,500
Carson Scholars Fund	$1,000
Clubs of America Scholarship Award	$1,000

In many instances, just like need-based aid, most merit aid awards are not enough to cover full tuition and, needless to say, other costs that are associated with working on an undergraduate degree.

Using a net price calculator, which all colleges and universities in the US are required to provide on their respective websites, allows you to determine how much you will pay for college after subtracting scholarships and grants.

Who Qualifies for Merit Aid?

Undergraduate students who can qualify for merit-based scholarships are those who meet the academic and extracurricular requirements with complete disregard for their economic background.

Need-based aid is for those who demonstrate financial need.

On the other hand, merit aid is for those who show excellence in academics in the form of high GPAs and standardized test scores as well as those who exhibit extracurricular achievements — there’s no need to demonstrate financial need.

Depending on the college or organization, eligibility for merit-based aid can be based on the following things:

• Academic performance
• Artistic talent
• Leadership skills
• Community involvement
• Athletics
• Special interests

Got what it takes to win a merit aid award and demonstrate financial need, too?

Believe it or not, it’s possible to receive both merit-based scholarship and need-based scholarship at the same time, thus allowing you to pay even less college costs out-of-pocket.

For instance, you may receive some form of a basketball scholarship, which is a type of merit-based scholarship, for being an exemplary basketball player as well as a Federal Pell Grant, which is a type of need-based scholarship.

12 Interesting Facts About Scholarships

1. Merit Scholarships are on a First-Come, First-Served Basis

What separates merit-based aid from need-based aid is that the former is based on a student’s academic achievements and extracurricular performances, while the latter is based on the financial need of the undergraduate.

But both of them are given by their providers on a first-come, first-served basis.

Since merit aid is not infinite like need-based financial aid, it’s a good idea for a college student to apply for it as early as he or she possibly can to enjoy the most generous offer possible.

2. You Can Ask for More

The figure you see in your financial aid award letter is not final.

So, in other words, you can appeal for more merit aid from the institution — many incoming freshmen students appeal for more merit-based scholarships, and around 68% of all appeals result in more financial aid.

However, since merit aid is limited, as just discussed, you should appeal your merit-based award without any delay. And also, make sure that you research beforehand the school’s prescribed aid appeal process.

3. Out-of-State Students May Receive More Money

Generally speaking, at public colleges and universities, out-of-state students receive more merit-based aid than in-state students — in the academic year 2022 to 2023, $8,886 was the average merit aid awarded to out-of-state students.

Meanwhile, it was only $4,975 for in-state students.

This is a common occurrence because it helps public institutions attract more students from other states to create a more diverse campus as well as make more money — out-of-state tuition and fees are higher than in-state tuition and fees.

4. Top Public Schools Offer Out-of-State Students More Merit

Other than receiving more merit-based scholarship awards, out-of-state students also tend to receive more merit aid offers than in-state students.

Well, at least at some of the most highly-ranked colleges and universities.

The average percentage of out-of-state undergrads at the top 10 public schools that receive merit aid is 95.3%.

However, when all 340 ranked public institutions of higher education by US News are taken into account, the average percentage of out-of-state students who received merit-based aid drops to 36.3%.

5. Ivy League Schools Only Offer Need-Based Aid

The Ivy Leagues and numerous other highly selective institutions in the nation do not offer merit-based aid.

That’s because their students have already proven their worth in both academic and extracurriculars during the rigorous selection process where only a very small percentage of all applicants get in.

Additionally, given that many of their incoming students have high GPAs, competitive institutions would run out of funds if they gave away merit-based aid as many would definitely meet minimum eligibility requirements.

6. Community Colleges Offer Merit Money, too

Because tuition costs at community colleges are lower than at four-year institutions, many assume that none of its attendees require financial aid. Well, a lot of them still do, and community colleges offer both need- and merit-based aid.

Some community colleges are members of the National Junior College Athletic Association (NJCAA).

It’s not uncommon for those who participate in the said league to offer athletic scholarships, which are just some examples of merit-based scholarships — some even offer the full-ride kind.

7. Some Aid Types are Non-Renewable

Federal financial aid is typically renewable for up to 4 years.

So, in other words, the student can renew his or her scholarship every year for as long as the requirements to maintain being eligible for it are maintained.

On the other hand, some merit-based aids are non-renewable — they are valid for one year only.

The Lavelle Leaders Award is an example of a one-time-only merit scholarship where awardees attending partner institutions such as Canisius College and St. Thomas Aquinas College receive $5,000.

8. Filling Out the FAFSA May or May Not be Required

Most colleges and universities do not require applicants interested in applying for merit-based scholarships to fill out the FAFSA. Of course, third-party merit aid providers have their own application forms.

It’s worth pointing out, though, that merit award applications can vary from school to school.

Some institutions, for instance, may require some details on the FAFSA to determine who is eligible for merit aid. As a matter of fact, the University of Central Florida uses the FAFSA when releasing merit-based awards to undergraduates.

9. Some Aid Types are Automatic Application

While some postsecondary institutions will require you to complete and submit a merit-based scholarship application form, sometimes even the FAFSA, other schools automatically consider you for merit award upon enrollment.

The vast majority of them offer automatic merit scholarships based on a student’s GPA and/or SAT or ACT scores.

Some examples of colleges with automatic merit awards include Louisiana Tech University, Oklahoma State University, Texas Tech University, the University of Arizona, University of Kentucky and the University of South Carolina.

10. Most Full-Ride Scholarships are Merit-Based

A full-ride scholarship is just like any other scholarship except that it covers each and every college expense, which means that you could complete your undergraduate degree program paying zero dollars.

But full-ride scholarships are uncommon (less than 1% of college students get them), and usually merit-based, too.

However, it’s important to point out that some colleges and universities and also third-party providers offering full-ride scholarships may also choose to confer these very rare awards based on the student’s financial need instead.

11. Most Scholarships for International Students are Merit-Based

International students studying in the US are eligible for financial aid. Most of the time, though, they are only eligible for merit awards, which means that they are eligible for it no matter their economic background.

Even though they are qualified, international students are expected by the institutions they are attending to demonstrate the ability to take care of a significant percentage of the overall cost of their pursuit of a higher education.

New international students are usually not eligible for need-based for they must prove their ability to study in the US.

12. Maintaining a Certain GPA is a Must

To be eligible for most merit-based scholarships, undergraduates must have a certain high school GPA.

And for those who qualify, keeping the GPA at a required level is of utmost importance to stay in the program.

Failure to meet this requirement could cause them to lose their eligibility for merit assistance.

For instance, at Trinity University, which is a small private liberal arts school in Texas, merit-based scholarship recipients would lose their eligibility if their cumulative GPAs fell under 2.0 — the minimum cumulative GPA was set at 2.5 in the past.