The Free Application for Federal Student Aid (FAFSA) is used to determine federal financial aid and need-based scholarships through schools and other organizations for college students. But did you know it’s also required for some merit scholarships as well? Generally, it’s required when funds are limited and to make sure that the money is going towards the people who need financial assistance the most. Let’s explore more where FAFSA fits in with merit scholarships.
Merit Vs. Need Scholarships
Flickr user US Department of Education
Need, or need-based, scholarships are based on demonstrated financial need. In most cases, financial need is determined by the FAFSA, but there are some exceptions. Some organizations, scholarships, or grants might require additional information or a different application.
Merit, or merit-based, scholarships are often based on academics, such as high grades or strong SAT/ACT test scores. They can also be determined by ethnicity, hair color, volunteer work, leadership experience, and more.
Some scholarships are both need and merit based, which means they’ll need to be the merit-related requirement and demonstrate financial need.
Both types of awards can come from colleges, universities, individuals, nonprofits, businesses, and other organizations.
Why Do Some Merit Scholarships Require the FAFSA?
Since merit scholarships are based on criteria other than financial need, it can sometimes be confusing why they would require FAFSA. However, since some merit awards are also need-based, applicants need to prove their financial situation. The FAFSA is often the easiest way to do so.
But what about merit scholarships that don’t have a financial need component? In these cases, scholarship funds are usually limited. The organization only has so much money to grant to eligible applicants and the organization wants to be sure that the money goes towards someone who needs the extra assistance to afford college. Other times, the organization, such as the school, won’t give aid out to anyone who hasn’t completed the FAFSA.
Which Merit Scholarships Require the FAFSA?
The most common organizations you’ll see requiring the FAFSA for merit scholarships are the schools themselves. Some colleges and universities simply won’t hand out any aid money, need- or merit-based, unless they were sent the information from the Department of Education, even if their merit awards don’t take financial need into account.
This is another reason why it’s so important to complete your FAFSA as soon as possible and every year, even if you don’t think you qualify for financial assistance, such as the Pell Grant. You could take yourself out of the running for free money* you didn’t know was on the table. To learn more about your schools’ scholarship criteria, head to their financial aid websites. They’ll list what you need to apply.
Do Merit Scholarships Require Other Financial Aid Information?
Some outside scholarship programs, such as those from nonprofits and businesses, won’t have access to your FAFSA. If their awards are need-based, they may instead ask for your Student Aid Index (SAI) from your FAFSA results, taxes, or other information. In some situations, you might have to complete another financial aid application. For instance, the Florida Bright Futures program is merit-based and requires the Florida Financial Aid Application (FFAA).
Merit scholarships are often based on strong academics, contributions to the community, or other unique criteria. However, some can require your financial information, including your FAFSA results. Even if you don’t qualify for the Pell Grant or other need-based aid, always complete the FAFSA early each year so you have a better chance of landing these merit scholarships and saving cash on your college education.
Are you ready to apply to merit scholarships? Our Scholarship Search Tool makes it easy to find the awards you qualify for – and apply. Plus, it’s completely free!
*While a scholarship does not have to be repaid, there may be other obligations associated with the scholarship.
| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
 |
5.19% - 15.81%* Variable
3.99%-15.61%* Fixed |
Undergraduate and Graduate |
VISIT CITIZENS |
 |
4.79% - 14.96% Variable
3.49% - 15.49% Fixed |
Undergraduate and Graduate |
VISIT SALLIE MAE |
 |
4.38% - 17.99% Variable
3.39% - 17.99% Fixed |
Undergraduate and Graduate |
VISIT CREDIBLE |
 |
5.34% - 13.19% Variable
3.48% - 12.61% Fixed |
Undergraduate and Graduate |
VISIT LENDKEY |
 |
5.25% - 14.26% Variable
3.39% - 14.16% Fixed |
Undergraduate and Graduate |
VISIT ASCENT |
 |
3.70% - 8.75% Fixed |
Undergraduate and Graduate |
VISIT ISL |
 |
4.99% - 16.85% Variable
3.47% - 16.49% Fixed |
Undergraduate and Graduate |
VISIT EARNEST |
 |
5.00% - 13.97% Variable
3.69% - 14.22% Fixed |
Undergraduate and Graduate |
VISIT ELFI |
