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Jack - I think you really nailed it. Many of the major merit awards are tied to Scholar or other special on campus programs. This is not to say that the money is not important, because it certainly is. In addition to the money these programs offer substantial benefits to members. Among these benefits are priority or special housing, priority registration, special programs & seminars, opportunity for research work starting in freshman year, better than normal accesability to profs and staff, special counselors or advisors, special off campus seminars or programs and in many cases even study abroad. Many of these programs begin during the summer before freshman year. But as I stated before, in most cases recipients of these awards are reaping a just reward for four years of dedicated work.
I think someone previously mentioned investment in the school or student. This is true because the school is investing in their future. They are hoping to identify individuals that will have a positive impact on the school not only immediately but almost more so in 20 or 30 years. Which school does not want a future nobel price winner or alumni who will contribute major funding in the future. So admissions not only has to assemble a vibrant undergrad college community, but they also have to crystal ball gaze for 20 - 30 years in the future.
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