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Financial aid awarded based on a student's exceptional abilities is often referred to as merit-based aid. This type of aid can include scholarships, grants, and fellowships that recognize academic achievements, artistic talents, athletic skills, or other specific skills. Unlike need-based aid, merit-based awards do not consider the student's financial situation but rather focus on outstanding performance or potential in a particular area. Institutions and organizations may offer these awards to attract talented students and encourage excellence in various fields.

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