Need-Based vs. Need-Aware 

When a student applies for college admission, a need-blind policy means that the applicant’s financial circumstances and whether they have applied for financial aid are not considered during the admissions process. In other words, a family's ability to pay for college has no bearing on the evaluation of the student’s application. This policy is especially beneficial for students who require substantial financial assistance due to their family’s economic situation.

Typically, highly selective institutions with substantial financial resources are more likely to adopt a need-blind admissions policy. For example, the University of Southern California (USC) states the following on its official website:

“USC is need-blind in its admission process, a student’s financial need will never influence an admission decision. In fact, nearly two-thirds of undergraduate students at USC receive financial aid.”
 

In contrast, a need-aware (or need-sensitive) admissions policy takes a student’s financial need into account when making admissions decisions. That is, if a student applies for financial aid, the institution may consider the amount of aid that would be required when determining whether to offer admission.

This approach is more common among colleges with limited financial aid resources. However, students should not automatically eliminate need-aware schools from their college list. Many institutions apply this policy only to a small percentage of applicants, often those on the waitlist or in borderline admissions cases. Therefore, it is highly recommended to consult with an experienced advisor to understand how a particular school implements its financial aid policies.