Financial aid is usually based on need.  This computes into a simple formula:

College cost – your expected family contribution = your financial need

Financial aid is also awarded based on merit (academic achievement), financial need, or a combination of both.  Some schools will offer merit scholarships to attract students who are high achieving relative to the school’s applicant pool.  Few schools maintain “need-blind” admissions, meaning that applicants are admitted without regard to their ability to pay.  Schools that do maintain need blind admissions will state this in their financial aid information.

Probably more than half of all student college applicants apply for financial aid.  Colleges themselves are the greatest sources of financial aid because they distribute money made available through the U.S. government.  There are various types of financial assistance and it is important that you understand the differences between them.