What's the difference between need-based and merit-based financial aid?

Hey applyingtocollege! I've been hearing about need-based and merit-based financial aid, but I'm not exactly sure what the difference is between the two. Can someone explain how they work and how I can qualify for each? Thanks in advance!

Hey there! Great question. The difference between need-based and merit-based financial aid primarily lies in the criteria used to determine who receives the aid.<br><br> Need-based financial aid is awarded based on a student's financial need, which is determined by the information provided on the Free Application for Federal Student Aid (FAFSA) or the CSS Profile. Factors such as family income, number of dependents, and other financial information are taken into account. Examples of need-based aid include grants, work-study programs, and subsidized loans.<br><br> Merit-based financial aid, on the other hand, is awarded based on a student's achievements and abilities, such as academic excellence, leadership, or artistic talent. Scholarships are a common form of merit-based aid. To qualify for merit-based aid, you may need to submit additional materials, like essays or portfolios, or maintain a certain GPA.<br><br> To be considered for both types of aid, it's important to complete the FAFSA and any additional application materials required by the colleges you're applying to. Best of luck with your college applications!