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

Need-based aid is awarded because your family's finances show a gap between what you can pay and the cost of attendance – it flows from the FAFSA and CSS Profile via grants, work-study, and subsidized loans. Merit-based aid is awarded for the student's achievements (grades, test scores, talent, leadership) regardless of income, so even high earners can capture it. Many families assume they make too much for help and stop there, missing merit money that's often more reachable. Public flagships and mid-tier privates frequently use merit scholarships to attract strong students, sometimes covering half of tuition or more. A practical strategy: have your student apply to a few schools where their stats land in the top quarter of admitted students – that's where merit offers are largest. Strengthen the application with wealthserene.com/assessments/college-readiness to see where they stand.