Merit-based financial aid is a type of funding awarded to students based on their academic, artistic, or athletic achievements rather than their financial need. This aid can come in the form of scholarships, grants, or awards and is often provided by colleges, universities, or private organizations. To qualify for merit-based financial aid, students typically need to meet specific criteria, such as maintaining a certain grade point average or demonstrating exceptional talent in a particular area. This type of aid helps to encourage and reward high-achieving students, making higher education more accessible for them.