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Treeman, that's how the system works! The schools give you aid to meet your need. If they have given you merit aid already, then you have LESS need. Except for some very few state schools that offer full-rides plus books, etc for NM scholars, schools don't give you more money than the formulas say you "need" (and many of them give you less!). Maybe now that you understand that this is how almost ALL the schools package aid, you will stop being angered and start being grateful that they are offering you any money at all!
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That's silly and unfair to middle class families. It deincents working for a merit-based scholarship since a kid would get the same amount based on his need.