<p>I understand your point about loans, so let’s only consider subsidized loans because those really do have an aid component.</p>
<p>The net effect of merit money can actually put real money in your pocket, but that is not necessarily the case. This scenario for instance:</p>
<p>Cost of Attendance $50k
EFC $20K
Total Aid $30k</p>
<p>Aid Package before University Scholarship:
National Merit $2k
Work Study $3k
Loans(subsidized) $3k
Grants $22k
Total $30k</p>
<p>Aid Package after University Scholarship
University Scholarship $10k
National Merit $2k
Work Study $0k
Loans (subsidized) $0k
Grants $18k
Total $30k</p>
<p>As you can see, while you did eliminate the $6k for loans and work study, but you also cut back your grant money by $4k. The net effect of the $10k scholarship is actually $6k. This formula can have especially harsh results when it comes to the Honor Scholaship if your EFC is about equal to the cost of room & board or less. </p>
<p>I remember thinking that it wasn’t a very equitable formula - giveth with one hand and taketh away with the other - but that is just the methodology that is used. And I should add that this methodology is not peculiar to Chicago, it’s pretty standard practice.</p>