Does your "elite" d3 school mean - elite academically or athletically ;-)... I don't believe merit money has anything to do with need.
Consider that the better academic schools attract some very smart students to apply. Those elite students would seemingly get a lion share of grants or merit money. After all, in order for the school to remain in that elite class it needs to attract/retain those students because as a school you feel they could be "leaders" some day (and of course you bank on them giving back).
So unless your athlete is in the top group of students, they are "fighting for" whatever grant money is left over. It's the economics of supply and demand. If you're a baseball player going to an academically elite d3 school, then one would assume you're not going there because you think it's a stepping stone to the MLB. It might be the stepping stone to your career though. It should get you in the front door or ahead of other applicants for your first interview/job.
I had two d3 athletes going to stronger academically d3 schools (Tufts/Muhlenberg). Neither at the top of their HS class academically. They each got some merit money, but each ended up with student loans. They need to have a stake in things - they're smart, they'll know why. There's *lots* scholarship money/grants available if your student takes the time to write essays or apply. Every 500-1000 adds up over time. BTW: I don't miss FAFSA applications or CSS Profile colonoscopies .