In the college application process , what is Need-based and Merit-based Financial Aid ?

Need-based financial aid is college aid that is awarded to students based on the income and size of their family and based on the student's income. Need-based aid is given in loans and outright grants. Merit based financial aid is awarded to students for their academic, artistic, or athletic skills. Eligibility is based on their special skills and talents, combined with their test scores, grades and after-school activities. This criteria sets merit- based aid apart from need-based aid, which is awarded based on the income level and similar factors.