When it comes to paying for college, many families hope that merit aid (this is gift money awarded by colleges that does not need to be repaid AND is generally not based on financial need) and outside scholarships will significantly reduce costs. However, there are several myths surrounding merit aid that can lead to unrealistic expectations. Here are a few:

Myth 1: High Achieving Students Always Get Full Scholarships From Colleges

Reality: While colleges do award merit-based scholarships to students with strong academics, full-ride scholarships are rare. Most merit aid covers only a portion of tuition, and some colleges do not offer merit aid at all, focusing instead on need-based financial aid. And with high school grade inflation at an all-time high, a report card filled with A’s is more common than ever.

Myth 2: Merit Aid and Scholarships Are Only for Straight-A Students

Reality: While GPA is important for many merit awards, many colleges consider other factors such as leadership, extracurricular activities, community service, and special talents. Some schools may offer merit aid based on specific interests, career goals, geographic location, or any other factor that makes a student appealing to the college. Ultimately, merit offers are a discounting method colleges use to entice students to attend their college over other options.

Myth 3: Private Scholarships Will Significantly Reduce College Costs

Reality: Outside scholarships don’t come directly from colleges–instead, they are private scholarships that students can apply to. And while they can help defray costs, they often cover only a small portion of total costs. Additionally, many colleges reduce institutional aid when students receive outside scholarships, meaning the financial benefit may not be as large as expected. Students who are applying for financial aid need to find out if the school will reduce the award package if a student also receives outside money before they invest a lot of time and effort on outside scholarship applications. But, in general, counting on outside scholarships to cover a meaningful amount of a college’s cost is not realistic.

Myth 4: Every College Offers Merit Aid

Reality: Many highly selective colleges (including all the Ivy League institutions) do not offer merit-based scholarships at all. Instead, they provide need-based aid to students who qualify. We’ve all heard of the “friend whose student got a full scholarship to MIT and they don’t have financial need”–see Myth 2–merit scholarships are a discounting tool; elite colleges have enough wealthy applicants who are happy to pay full tuition that they do not need to offer merit.

Myth 5: Merit Awards Are Guaranteed All 4 Years

Reality: Read the fine print–not all schools award merit for all four years at the same level. Most students are required to maintain certain grades/GPAs for the merit award to continue, even if awards are for all four years.

How to Maximize Merit Aid and Scholarships

• Apply to schools where you are a top applicant. Colleges are more likely to award merit aid to students who stand out academically in their applicant pool. This means your “Reach” colleges are not generally going to be the colleges where you should expect merit scholarships. As the saying goes, you can chase merit or prestige, but rarely both at the same place.
• Look for automatic scholarships. Some colleges grant merit aid automatically based on GPA and test scores, while others require separate applications. Some colleges list their merit awards clearly on their websites, which is amazingly helpful for students and parents trying to figure out actual costs. Examples include Texas Tech, Mizzou, Alabama, Arizona, and Miami U Ohio.
• Search for outside scholarships early. Websites like Going Merry, Fastweb, Scholarships.com, and local community foundations can help you find additional funding.
• Maintain strong academic and extracurricular records. This keeps you eligible for both institutional merit aid and outside scholarships.