Financial aid is not 'funny money'. Colleges make every effort to award good students all the aid they can. We do not benefit from unused scholarships. We benefit when scholarships are awarded to help students obtain an education. At Wooster, for instance, in 2000-2001 our students are receiving more than nine million in institutional grants and scholarships.
Merit scholarships are only for exceptionally intelligent students.
At Wooster, for instance, half of the students in each year's entering class are merit scholarship winners, including our 'Scottish Arts Scholarship' winners who excel in one of the Scottish musical arts of bagpiping, drumming, or dancing. Since my older child did not get financial aid at a state university, I know that my younger child will not qualify at a high-cost private school. Aid eligibility is partially determined by the cost of the school in which you have an interest. A family who receives little or no aid at a low-cost state institution might well qualify for significant financial aid at an independent college. A family that is not eligible for federal or state grants might well receive grants from the college itself.