College preferences and choices of a sample of high-ability high school seniors applying to colleges in spring 1984 were studied to determine the award of no-need (merit) aid to the students and the degree to which such aid influences college choices, in relation to other factors. A multistage model of college choice behavior was employed that focuses on perception formation, preference judgment formation, and choice. The study is based on a national probability sample of 2,000 high-ability high school seniors who had taken the College Board's Scholastic Aptitude Test (SAT). Students were contacted before and after the actual college choice decision. A total of 1,183 students who had applied to at least two colleges were surveyed by mail and interviewed. Sixty-four percent of these students, received at least one offer of financial aid. Results indicate that most colleges consider a student's academic ability in determining whether a student receives financial aid and the size of the aid package. Monetary factors were important to college choice; however, the primary determinant of college choice was perceived college quality. Appendices include information on the multinomial logit model, the mail questionnaire, and the interview schedule. (SW)