Merit Scholarships are tuition payments for higher education that reward a student for academic achievement, usually based on College Board exams. Athletic scholarships are "merit" because they are based on performance on the field of play.
These differ from other scholarships that are "need-based". There is a raging debate in higher education on the matter.
Merit scholarships bring in better students with more skills, who raise the level of performance of other students. They also raise the goals and aspirations of high school students,m providing a reward for scholarly excellence. They are favored by conservatives. Need based scholarships spread the wealth and help disadvantaged groups whose students do not perform as well; they are favored by liberals.
The "Robert C. Byrd" scholarship is offered by each state, but some states (such as New Jersey) have rules that prohibit homeschoolers from participating.