Need-Based and Merit-Based Scholarships

Reviewed: June 2015

Many financial aid offices will report both need-based and merit-based scholarships in the financial aid section of the training grant form.

It is important that you discuss with consumers the type of scholarship they are receiving. DVR cannot require consumers to use merit-based scholarships, which are not comparable benefits, to pay for their education. Consumers are required to use need-based scholarships to pay for their education.

If a consumer provides documentation that he/she has received a merit-based scholarship, we should inform the consumer that DVR funding can be provided to offset the merit-based scholarship, if the consumer chooses. If the consumer chooses to take the offset, we must inform the consumer that it could cause an over award.

Use the exception process to request the offset funding. Inform the school of the offset funding awarded by filling in the exception box on the TG form and emailing it to the school.