FA vs merit aid -- does it matter?

bclintonk
Thu, 29 Nov 2012 17:45:23 +0000

Very few schools meet 100% of need with 100% grants; there’s usually a loan and/or work-study component, in addition to a student self-help expectation that goes into the definition of need. In a sense loans and work-study aren’t “aid” at all; they’re just different forms of self-help, you’re still the one doing the paying, it’s just an arrangement that helps spread the cost over time (if it’s a loan) or gives you a leg up in finding a job (work-study). Merit aid is usually pure scholarship/grant. So it may be advantageous to apply for the merit aid if it (or some portion of it) can substitute for the loan and/or work-study portion of the need-based FA package, or for the student self-help expectation.

Schools are also all over the map with respect to “stacking” merit and need-based aid. Some schools will recalculate need after the merit award, so essentially the merit award simply replaces need-based aid dollar for dollar (though here’s where some will say the merit award can replace loans and/or work-study first). Others will allow “stacking,” so the merit award is on top of the need-based award, i.e., you may not need to pay full EFC. It just depends on the school and is perhaps worth a conversation with the FA office to clarify their policies.