Difference In Need Based Aid and Merit Based Aid

Higher education in this economy comes with a variety of costs. Educational fees, accommodation, and commute fees with personal expenses go beyond the budget. The budget gives students a hard time to tackle. Compromise on education is unfair; hence, scholarships are a savior. A brighter future requires strategic planning and decision-making. While choosing a perfect degree, students must look for scholarships aiding their studies. This allows them to manage their expenses and stay on track with enhanced academic progress. Let’s delve into need-based and merit based aid:

Need Based Aid

As evident from its name, need-based aid is financial assistance given to students who need to improve economically. The difference between Need-Based Aid and Merit-Based Aid is that need-based aid requires no top scores or grades. Therefore, it is given to students who are struggling with finances.

The primary goal of need-based aid is to provide means for lower-class students to continue their studies. A brighter future is guaranteed with education, not labor. The eligibility criteria are assessed by analyzing the financial situation, housing condition, and assets. Forms like FAFSA to asses financial needs are also submitted. Need-based aid also checks Expected Family Contribution (EFC).

EFC draws a rough picture of how much family will contribute to studies. The remaining gap is filled with need-based aid. However, academic records and achievements are not that important. They do not significantly impact the need-based aid applications, making education more accessible.

Types of Need based Aid

• Grants: No need to repay this aid.
• Work-study Programs: These part-time jobs allow students to earn money on or off campus.
• Subsidized Loans: These loans ensure the government pays interest while the student educates.
• Institutional Aid: This is financial assistance given to students through institutes. It helps fill the gaps in the difference between the EFC and total education costs.

Merit Based Aid

Unlike need-based aid, merit-based aid is based on academic records. The more suitable a student performs academically, the higher the scholarship chances. Merit-based aid is provided as a reward for brilliant academic performance. Artists are often granted this scholarship because of their artistic abilities.

Athletes and those participating in sports receive these aids to continue their education. This allows them to build their careers while pursuing higher education. Eligibility for merit-based aid includes good grades (SAT, ACT), certificates, and brilliant overall performance. Talent, skills, and extracurricular participation fulfill the criteria and render merit-based aid opportunities.

Types of Merit based Aid

• Academic Scholarships: Brilliant Academic performance (3.5+ GPA)  ensures these merit-based aids.
• Talent Scholarships: Talent scholarships are based on participating in events, extracurricular activities, and school-sponsored programs.
• Specialized Scholarships: Specific fields of study offer merit-based aid in particular disciplines.
• Private Scholarships: Many private institutions and programs offer aids for students to apply based on their disciplines and fields.