<p>AFA,
if memory serves, UPenn is a “need only” school, they don’t have any merit awards. And you are right, in-state schools ARE the least expensive for the residents( in our case UW was the only in-state school S would consider, and it was his #3 pick overall) . The rest of his schools gave him more merit money, but being far away and really expensive, there was still a gap between the EFC and money offered. UW ended up exactly what it was supposed to be-affordable. 
He probably would get more merit money out of WSU( plus faculty-brat scholarship) , but as I said earlier-it was not under consideration, he just doesn’t like it. :)</p>