Merit-based aid is financial assistance awarded to students based on their academic, artistic, or athletic achievements rather than their financial need. This type of aid can come in the form of scholarships or grants and is often provided by colleges, universities, or private organizations to attract talented individuals. Students may qualify for merit-based aid by meeting specific criteria, such as maintaining a certain GPA, scoring well on standardized tests, or demonstrating exceptional skills in areas like sports or music. This funding helps reduce the cost of education and encourages students to excel in their chosen fields.