Choosing the right scholarship can be confusing, especially when you constantly see two popular terms everywhere: merit-based scholarships and need-based scholarships.
Both provide financial help for students, but they work very differently. Understanding these differences can help you choose the right one, increase your chances of getting funded, and avoid losing opportunities simply because you didn’t apply for the right award.
In this guide, you’ll learn:
- What a merit-based scholarship means
- What a need-based scholarship means
- Key differences between merit and need-based awards
- Eligibility requirements for both
- Which type offers more funding
- Which type is easier to win
- How to choose the right scholarship for your situation
- Tips to improve your chances of winning each kind
Let’s dive in.
What Is a Merit-Based Scholarship?
A merit-based scholarship is awarded to students based on outstanding achievements, not financial background.
This type of scholarship rewards excellence in one or more areas:
Academic Excellence
- High grades, exceptional test scores, or strong academic records.
Leadership
- Active involvement in school activities, clubs, or leadership roles.
Sports Achievements
- Athletic performance in school, clubs, or national-level competitions.
Arts & Creative Talents
- Music, drama, visual arts, dance, design, etc.
Community Service
- Volunteer work and positive community contributions.
Special Talents
- Coding, robotics, public speaking, writing, entrepreneurship, etc.
Who Is a Merit-Based Scholarship Best For?
Students who have:
- Strong grades
- Special talents
- Awards/achievements
- Leadership history
- A strong portfolio or track record.
What Is a Need-Based Scholarship?
A need-based scholarship is awarded to students whose families cannot afford the cost of education.
The main goal is to help financially disadvantaged students access opportunities they otherwise could not afford.
Need-based scholarships are considered:
- Family income
- Household size
- Parent(s) employment status
- Tuition affordability
- Financial responsibilities
- Poverty level or special hardship conditions.
Who Is a Need-Based Scholarship Best For?
Students who:
- Come from low-income households
- Cannot afford school fees without assistance
- Need support to continue their education
- Face financial hardship that limits their opportunities.
Key Differences Between Merit-Based and Need-Based Scholarships
| Category | Merit-Based Scholarship | Need-Based Scholarship |
| Main Criteria | Talent, achievement, grades, skills | Financial hardship, low-income background |
| Financial Status | Not considered | Primary factor |
| Focus | Rewarding achievements | Providing equal access to education |
| Competition | Usually very competitive | Competitive but based on financial verification |
| Documents | Certificates, transcripts, portfolios | Income proofs, tax documents, financial forms |
| Who Benefits | High-performing students | Students who cannot afford school |
| Renewal Requirements | Maintain performance (GPA/talent) | Maintain financial need and academic stability |
Eligibility Requirements for Merit-Based Scholarships
To qualify for a merit scholarship, you typically need:
Strong GPA
- Most require a minimum 3.0–4.0 GPA (or country equivalent).
Test Scores
- Such as SAT, ACT, WAEC, JAMB, IGCSE, etc.
Proof of Talent
- Certificates, awards, videos, portfolios.
Leadership/Community Participation
- Clubs, volunteering, school prefect roles, and local impact.
Strong Recommendations
- Teachers, coaches, mentors.
Compelling Application Essay or Statement of Purpose
Eligibility Requirements for Need-Based Scholarships
Need-based scholarship requirements include:
Proof of Family Income
- Tax forms, salary slips, or official income statements.
Financial Need Form
- Such as FAFSA (USA) or local financial verification documents.
School Records
- Basic academic performance (usually not too strict).
Proof of Hardship
- Medical bills, unemployment letters, or social worker documents (if applicable).
Household Information
- Number of dependents, living conditions, etc.
Which Type of Scholarship Is Easier to Get?
Merit Scholarships
- Easier for highly performing students, but extremely competitive.
Need-Based Scholarships
- Easier for students from low-income backgrounds, but requires financial proof.
Neither is automatically easy
The right one depends on your personal strengths and situation.
Which Offers More Funding?
Both can offer large awards, but in general:
- Need-based scholarships often cover more tuition because they aim to close financial gaps.
- Merit scholarships may offer higher prestige and extra benefits (leadership programs, mentorship, travel opportunities).
Can You Apply for Both Types?
Yes.
Many students successfully apply for both merit-based and need-based scholarships.
Some programmes even combine both factors.
For example:
- A student with high grades and low income may qualify for multiple awards.
- Some scholarships require merit first, then assess need.
How to Choose the Right Scholarship Type
Choose a merit-based scholarship if you:
- Have excellent grades
- Are talented in sports, arts, or leadership
- Have awards or achievements
- Can prove consistent performance
Choose a need-based scholarship if you:
- Struggle financially
- Come from a low-income household
- Cannot afford tuition without help
- Have financial hardship papers to show.
Tips to Increase Your Chances of Winning a Merit-Based Scholarship
Improve Your Grades and Test Scores
- Academic excellence is key.
Build a Strong Portfolio
- Show your best work (sports videos, art pieces, certificates, etc.).
Win Smaller Awards First
- They help build credibility.
Take Leadership Roles
- Show initiative, schools love it.
Write a Compelling Application Essay
- Tell your story clearly and confidently.
Tips to Increase Your Chances of Winning a Need-Based Scholarship
Gather All Income Documents Early
- Missing financial documents lead to rejection.
Write an Honest Financial Statement
- Explain your situation respectfully and clearly.
Maintain Good Grades
- Even need-based scholarships require academic stability.
Apply Early
- Funding is often limited and awarded on a first-come basis.
Apply for Multiple Scholarships
- Don’t depend on just one.
Understanding the difference between merit-based and need-based scholarships helps you choose the right path and increase your chances of securing funding.
Merit scholarships reward your talent and achievements, while need-based scholarships make education accessible to students who cannot afford it.
Whichever one fits your situation, start early, gather the right documents, and apply widely; your opportunity is waiting.
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