Financial Matters: How to Find Colleges That Offer Merit Aid
Perhaps you’ve realized that you won’t qualify for need-based aid after running net price calculator tools or an SAI tool. That can be discouraging. The good news is that many colleges award merit aid, which is money given for achievement rather than financial need. Understanding how merit aid works, how it differs from need-based aid, and how to find generous colleges can make a difference.
Merit Aid vs. Need-Based Aid
• Need-based aid depends on your financial situation, as calculated through the FAFSA and/or the CSS Profile. Federal grants, subsidized loans, college/university grants, and work-study programs fall into this category.
• Merit aid is different. It’s awarded for academic success, leadership, or unique talents, or other strengths that make a student stand out, regardless of income or assets. Colleges use it to attract students who would enhance their community or academic reputation.
Some colleges offer only need-based aid, while others provide large merit awards to students they especially want to enroll. Knowing which type of school you’re dealing with can help you focus your search.
In his book Who Gets In and Why, Jeff Selingo describes colleges as either buyers or sellers in the admissions marketplace.
Seller schools are the well-known, highly selective universities such as Harvard, Stanford, and Amherst. They admit a small percentage of applicants, and all of their financial support is need-based.
Buyer schools are institutions that compete for strong students. They may have higher acceptance rates or be trying to raise their academic profile, so they use merit scholarships to attract applicants. Understanding this buyer-seller model can help you build a smart and budget-friendly college list. Look for high-quality “buyer” schools where your GPA and test scores place you in the top 25 percent of admitted students. That is where you’re most likely to receive generous merit aid. Examples include Dickinson College, Elon University, and Santa Clara University.
How to Use the Common Data Set
The Common Data Set (CDS) is one of the best tools for finding schools that give significant merit aid. It’s a standardized report that colleges post online. It can be found by searching for the college's name and the term "Common Data Set."
When you find it, scroll to Section H, titled Financial Aid, and look for:
• Percentage of students without financial need who received merit aid. A figure above 10 to 15 percent shows that the school awards merit aid.
• Average non-need-based scholarship amount. If the average is $20,000 or more, the college is generous with top applicants.
• Overall percentage of students receiving institutional aid. This shows how much the college uses scholarships to shape its incoming class.
By comparing this data across several colleges, you can identify where your academic profile might lead to substantial awards.
It’s also worth knowing that some colleges offer full-tuition or even full-ride scholarships for students with exceptional grades and test scores. These awards are highly competitive and may require separate applications.
A good place to start is by checking lists of full-tuition scholarships available at various universities.
• Keep in mind that not all schools allow merit and financial aid to be combined. Policies vary by institution regarding the stacking or combining of various types of aid. Contact the financial aid office at each school to confirm how they handle different types of aid in combination.
A smart approach is to group colleges by how they handle merit aid:
• Likely full-pay (sellers): Highly selective private universities and top public flagships that give little or no merit aid.
• Likely partial-merit (moderate buyers): Strong regional or mid-tier national universities that award $10,000 to $25,000 per year to top students.
• High-merit potential (aggressive buyers): Colleges seeking to raise rankings or geographic diversity that may offer generous merit aid, including full-tuition or full-ride scholarships.
Next, compare your GPA and test scores with each school’s middle 50 percent range. If you’re above the midpoint, you’re in the zone for merit aid.
The Bottom Line
Finding colleges that offer merit aid is about strategy, not luck. It begins with understanding buyers and sellers, then using tools like the CDS to see where your accomplishments are most valued.
As Jeff Selingo reminds readers, college admissions isn’t about finding one perfect school. It’s about finding the right fit for your goals, personality, and budget. When you focus on value and alignment rather than name recognition, you often discover that a reasonable (for you) financial offer can also be one of many great-fit schools.
