Sticker price doesn’t tell the whole story.

If you’re looking at a $75,000 per year private college and a $40,000 in-state school, the obvious conclusion is to go with the cheaper option — right?

Not so fast.
Because while most families are focused on need-based financial aid, the real opportunity for high-income families often lies elsewhere.

It’s called merit aid.
And it can dramatically change the numbers — without sacrificing prestige or quality.

What Is Merit Aid?

Merit aid is a form of tuition discount awarded by colleges based on a student’s accomplishments — not the family’s income or assets.

It can be awarded for:

• Academic performance (GPA, test scores, class rank)
• Leadership or extracurricular involvement
• Special talents (athletic, artistic, musical)
• Geographic or demographic diversity

Unlike need-based aid — which phases out quickly for families earning over ~$150K — merit aid is available to families across the income spectrum.

In fact, many of the families we work with earn well into six figures and still receive $20,000–$40,000+ per year in merit aid from top schools.

Why Merit Aid Matters for High-Income Families

Let’s say your student is looking at private colleges with a price tag of $75,000/year. That’s $300,000 over four years — after tax.

If your family earns $350,000/year and has $2M+ in investment assets, you may be entirely shut out of need-based aid. But if your student applies to a school where they’re in the top 20–25% academically, they may be offered significant merit-based scholarships to incentivize enrollment.

Colleges are businesses.
They offer discounts to students who make their incoming class look stronger.
And the stronger your student’s profile relative to the school’s average, the more leverage you have.

How to Maximize Merit Aid

✅ Build a college list that includes "merit-friendly" schools.
Some schools give little to no merit aid (e.g., most Ivies). Others — like Case Western, Northeastern, Tulane, USC, or Richmond — offer substantial non-need aid to top applicants.

✅ Apply to schools where your student will stand out.
Merit aid is often awarded to students who are in the top 25% of GPA and test score bands for that school.

✅ Don’t skip test scores if they’re strong.
Even in a test-optional world, high SAT/ACT scores can unlock scholarship dollars.

✅ Use the Common Data Set to your advantage.
Search "[School Name] Common Data Set" to see how much non-need-based aid they offer — and to how many students.

✅ Be ready to negotiate — yes, even with colleges.

Most families don’t realize this, but merit aid can be negotiated — especially if your student receives stronger offers from peer institutions.

This is where strategy and research really pay off.
Colleges are competing for students who will boost their class profile, and they know they’re in a battle with other schools in the same tier.

For example:
If your student receives a $28,000 annual scholarship from Denison University, and they’ve also been admitted to Kenyon College (both small, selective liberal arts colleges in Ohio), it’s not unreasonable to go back to Kenyon and say:

“We’d love to attend, but Denison has offered a much more generous merit package. Is there anything you can do to close the gap?”

In many cases, they will.

Schools don’t want to lose strong students — especially to their direct competitors.
They may not match the offer entirely, but you may see an increase of $5,000–$15,000 per year just by asking — especially if your student is in their top quartile academically.

That’s where having offers from multiple “merit-generous” schools is powerful. Even if your student has a clear first choice, applying to a few peer institutions that are known for giving strong merit aid gives you leverage.

Some examples of schools that often give generous merit scholarships:

• Case Western Reserve University
• Tulane University
• University of Richmond
• Rhodes College
• St. Olaf College
• Denison University
• University of Denver
• Loyola Marymount University
• American University

None of these require you to sacrifice quality. But all of them have been known to discount tuition significantly for top applicants — and you can use those offers as a starting point in merit aid negotiations elsewhere.

Bottom Line

Don’t assume your income disqualifies you from financial aid.
Merit aid is the “great equalizer” for families who have done well financially but still want to pay a fair price for college.

It’s not just about finding the cheapest school. It’s about finding the best value — and the schools that value your student.

If you’d like help building a smarter college funding strategy — whether it’s understanding merit aid, evaluating 529 plans, or weighing Roth IRA options for education — let’s talk.

We help families retire better and send their kids to college without blowing up the rest of their financial plan.