💸 Paying for College: Need-Based vs Merit-Based vs Scholarships

So many students (and families!) ask: "How do I get a full scholarship?"

But did you know there are very different types of aid — and most top U.S. schools don’t offer “scholarships” at all? Here's how it works 👇

🟢 1. Need-Based Financial Aid

What is it?

Aid based only on your family’s financial situation — not grades, test scores, or activities. You submit documents (like tax returns), and the college decides how much you can afford.

Who gives it?

Mostly top private universities (e.g., Harvard, Yale, Amherst, UChicago). Many offer 100% need-based aid, meaning they will cover whatever they calculate you can’t afford — if you’re admitted.

Key points

You must apply for it when applying for college.
You don’t need to be “top of your class” to get it — just demonstrate financial need.
It’s not a scholarship, and not merit-based.
It can include grants, work-study, and loans — or just grants at very generous schools.

🔵 2. Merit-Based Scholarships

What is it?

Aid based on your academic achievement, talents, leadership, or other qualities — regardless of your financial need.

Who gives it?

Some U.S. universities (esp. large public schools and mid-tier privates).
Often competitive — you may need to apply separately or meet specific criteria (e.g. 4.0 GPA, top 5% class rank).
Not typically offered by Ivy League or “need-blind” schools — they focus on need-based aid only.

Key points:

International students can qualify at some schools.
You usually don’t get both full need-based and full merit aid at the same school — it’s one or the other.
Some full-ride scholarships (like the Jefferson at UVA or Robertson at Duke/UNC) are merit-based, but rare.

🟡 3. External Scholarships

What is it?

Money from outside organizations — not the college itself. This can include:

Local or national foundations
Companies
Government programs (like DAAD or Fulbright)
Essay contests, competitions, or community awards

Who gives it?

Tons of groups worldwide. Some are based on merit, others on need, and many are specific (e.g. for women in STEM, students from a certain country, etc).

Key points:

You must apply separately from your college application.
Some are renewable, some are one-time.
If you get one, your college might reduce your aid from them — so always check their policy.

❗️Common Myths to Avoid

🚫 “If I have good grades, I’ll get a scholarship.”

Only true if a school offers merit aid, which many top schools do not.

🚫 “Full ride = merit-based.”

A “full ride” can come from either need-based or merit-based aid.

🚫 “I can get both merit aid and need aid.”

Usually, colleges offer one or the other — not both.

📌 Next up: We’ll go through how need-based financial aid actually works — how it’s calculated, what to expect, and how to prepare.

Write your questions below so I can include them in the next post! 💬💜

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