Merit aid and need-based aid are both financial aid. If someone is giving you (or even loaning you) money to help with your education expenses, that’s financial aid. It doesn’t matter if you’re getting the money because you have a high GPA and perfect test scores, because you come from an impoverished family, or because you’re a highly recruited Division I football player. It’s all money coming your way to help with college costs, also known as financial aid.