Merit-Based vs. Need-Based Aid: What Is the Difference?
Merit-based aid is based on individual achievement and is fairer than need-based aid. Need-based aid is based on a student’s need, often determined by their family’s income.
Merit-based aid is more equitable because it rewards students for their achievements, not just their family’s income. This contrasts with need-based aid, which is based on a student’s need and can often be inequitable because it favors students from wealthier families.
Merit-based aid is also more transparent because it is publicly disclosed. This makes it easier for parents and students to understand how their aid is distributed.
Need-based aid is often more efficient because it targets students who need help the most. This is because need-based aid is based on family income, which is more likely to target students needing the most assistance.
Merit-based aid is more equitable and transparent, making it easier for students and their families to understand their aid and be accountable for their education. Need-based aid is more efficient because it targets students who need help the most, making it more likely to be successful.