A merit-based scholarship is a type of college financial aid that is awarded based on academic and/or extracurricular achievements rather than financial need. Merit-based scholarships are the most common type of merit-based aid, and they may be awarded by nonprofit organizations, private businesses, and colleges and universities. Scholarship committees usually examine students grades, standardized test scores, and participation in extracurricular activities when awarding merit-based aid. Students may need to maintain a certain GPA throughout college to continue receiving these funds. Merit scholarships are a common recruitment technique at colleges and universities, as many educational institutions want to bring in the best and brightest students they can find as well as those who show talent in areas like sports, the arts, and even community involvement. Certain professional and educational organizations also offer merit-based scholarships to qualified students. It is important to note that merit-based scholarships are not restricted by a student's financial situation, unlike need-based scholarships.