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<p>You are confusing terms. Merit aid is typically $$ awarded based on merit (GPA, test scores, community service, outstanding accomplishments). Some schools do connect merit $$ to financial need, but there are schools that don’t. Ivy League schools do not offer much in merit $$. What you have described is financial need. It is strictly based on income/assets and not connected to merit. So kids that are very high achieving but have parents that make too much $$ to pay their expected family contribution (EFC which is what you determine by using a school’s net price calculator) cannot attend schools leaving a gap between financial aid and cost of attendance.</p>