How Does Merit-based Financial Aid Work?

I'm going through the financial planning phase and came across merit-based financial aid. It sounds like a great help, but I have NO clue how it works or how to get it. Can someone explain more and offer any tips about how best to approach this?

Merit-based financial aid is a type of financial assistance awarded to students based on their academic achievements, extracurricular involvements, and/or talents, and it's not tied to financial need. This means, unlike need-based aid, it's awarded regardless of a student’s or their family’s financial situation.

In order to receive merit aid, you need to showcase your exceptional abilities in one or multiple areas. Some colleges will automatically consider you for merit aid when you apply, and others might require you to submit additional applications or essays. In most cases, merit-based scholarships come directly from the colleges themselves, so it's important to research each university's offerings and application process.

When you're applying for colleges, look at schools where your achievements are particularly impressive compared to the rest of the applicant pool. Scholarships are often given to students who are at the top of the admitted students' pool, and therefore, even if you're an outstanding student, you may not receive scholarships from the most competitive universities. On the other hand, a university where you’re in the top 10-25% of applicants is far more likely to give you merit aid, since they want you to choose them over other universities.

Being aware of scholarships' deadlines is crucial - many merit scholarships require you to apply Early Action or Early Decision, or have other specific deadlines that are usually earlier compared to financial aid deadlines.

One more piece of advice - keep the 4 Tiers of Extracurriculars in mind. A lot of merit scholarships value leadership and initiative, so if you can show that you've excelled in a particular area (say, you’re the captain of your football team or you've started your own community service project), that's going to be highly beneficial in securing merit-based financial aid.

Bear in mind, merit scholarships can significantly reduce your college costs, but they are competitive, so it's smart to have a backup plan too. It's always good to apply to a balanced mix of colleges – reach, match, and safety – and to apply for need-based aid if you qualify. Good luck!