{"id":2204,"date":"2025-11-04T15:31:23","date_gmt":"2025-11-04T21:31:23","guid":{"rendered":"https:\/\/myredkite.com\/blog\/?p=2204"},"modified":"2026-01-06T17:09:17","modified_gmt":"2026-01-06T23:09:17","slug":"need-based-vs-merit-based-aid-a-complete-parent-guide","status":"publish","type":"post","link":"https:\/\/myredkite.com\/blog\/need-based-vs-merit-based-aid-a-complete-parent-guide\/","title":{"rendered":"Need-Based vs Merit-Based Aid: A Complete Parent Guide"},"content":{"rendered":"\n

In our latest blog<\/a><\/strong>, we introduced the basics of need-based aid and merit-based aid, two major ways to bring down the cost of college. Now, let\u2019s take a closer look at how colleges decide who gets what, what\u2019s really happening behind the scenes, and what you can do as a parent to help your student qualify for both.<\/p>\n\n\n\n

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How Colleges Actually Decide Aid<\/h4>\n\n\n\n
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Every college has its own formula for deciding how much money to offer your student.<\/p>\n\n\n\n

Need-Based Aid:<\/strong> Colleges look at your FAFSA (or CSS Profile at some schools) to calculate your Student Aid Index (SAI)<\/strong><\/a>, which is their estimate of what your family can afford to pay. From there, they decide how much of the remaining \u201cfinancial need\u201d they\u2019re willing to cover. Some colleges commit to meeting 100% of need. Others might cover only 60\u201380%.<\/p>\n\n\n\n

Merit-Based Aid:<\/strong> Merit aid helps colleges recruit the students they most want. Students with strong grades\/test scores and qualities that fit campus goals (e.g., STEM interest, specific majors, leadership, arts, community impact) to strengthen its overall profile.<\/p>\n\n\n\n

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Red Kite Pro Tip:<\/strong> Submit strategically. If a college is test-optional and your student\u2019s score sits below its median, consider applying without scores to strengthen merit chances tied to GPA and rigor.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

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Parent Insight: Need-Based Aid Isn\u2019t Just for \u201cLow-Income\u201d Families<\/h3>\n\n\n\n

A lot of parents assume they won\u2019t qualify for need-based aid, especially if their household income is above \\$100K. In reality, many families in that range still receive need-based help. Why? Because eligibility depends on more than income. Colleges look at the total cost to attend, how many kids you\u2019re supporting in college at the same time, and what your family can reasonably cover.<\/p>\n\n\n\n

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The Overlap Between Need-Based and Merit Aid<\/h4>\n\n\n\n

A common misconception is that your student will either get need-based aid or<\/em> merit aid. In reality, a lot of students receive both. Together, they can significantly lower what you actually pay.<\/p>\n\n\n\n

Here\u2019s how they can work together:<\/p>\n\n\n\n