Each year, more than $75 billion in financial aid is awarded. Most of this is need-based. But, there is a definite increase in the amount of merit aid available. In fact, merit-based grants are now being awarded by 14 states!

States now allocated at least 25 percent of their funding to merit awards, up by 15 percent from a decade ago. In fact, For example, Georgia's HOPE scholars (high school graduates who earned at least a "B" in their college prep courses) receive free tuition plus $300 at state schools. Florida's Bright Futures scholars get three-quarterse of their tuition paid, plus $300 at state schools if they earn at least a 3.0 GPA. Furthermore, students in private schools in both of these states receive equivalent breaks. These programs are huge. Florida's merit grants help 120,000 college students each year; Georgia has spent more than $2 billion helping 800,000+ students since its program began in 1993.

Students at private colleges and universities are also benefiting; private colleges now award more than one-third of their funding on the basis of merit (compared with 27% just a decade earlier).

As a result of this new funding, the number of students who are footing the full cost of college has decreased significantly; in the year 2000, nearly 45% of all college students paid the costs themselves; now its down to 37%t, according to the National Association of Student Financial Aid Administrators.

Tip:  Want to learn more about merit-based scholarships? If you are a college-bound high school student, click here; if you are already in college or returning to college, click here.