Merit-based financial aid has been a growth industry in the United States over the past decade. Much media attention has focused on the use of merit aid by colleges and universities to try to attract academically talented students. In this article, the author argues that merit aid programs are the wrong tools for helping develop a skilled workforce in that these programs do not increase college access for students who would otherwise be unlikely to attend college. As such, the author suggests loan-forgiveness programs and need-based assistance programs as better alternatives to merit aid programs.