Need-Based vs. Merit-Based Aid
There are two main types of financial aid for students in higher education. The first is need-based aid, which doesn't consider any factor except need. Eligibility is based solely on the assets and income of the prospective student and his or her family. Merit-based aid covers a range of categories, including academic, athletic and artistic talent. Need is not a requirement, so an affluent student is as entitled to merit-based aid as a student with limited income and assets.
