There are basically two types of financial aid. The first type is merit-based and does not depend on your family's financial status. Merit-based aid is awarded for a student's excellence in a particular area such as academics, music, or sports. Scholarships are an example of this type of aid.
The second type of aid is referred to as need-based aid. The amount of money you receive from these sources depends on how much you and your family can afford to pay towards your college expenses.
