Okay, this topic seems to come up a lot, so here's some info for those interested.
The University of Virginia just instituted the most ambitious financial aid program among all public schools called Access UVA, which will meet 100% of need. If you're a poor student (in-state or out-of-state), you will not have to take out any loans. Any amount that you can't afford will be covered by grants. If you're a middle-class/rich student, your loans will be capped at around $15,000 for all 4 years. Any amount of need above that will be covered with grants instead of loans, and that includes out-of-state students as well. Students will not be forced into work-study programs, because UVa realizes that students should be studying rather than worrying about earning enough money to afford college. Lastly, UVa will offer free one-on-one counseling on college financing & debt management.
http://www.virginia.edu/accessuva/
As for merit scholarships, UVa has the Jefferson Scholarship program, which offers a full-ride to UVa, plus summer programs in Europe, etc.
http://www.jeffersonscholars.org/default.asp