Yeah, Sewanee-The University of the South does provide scholarships based on merit. Here are some of them:

Vice-Chancellor’s Scholarship
Total Worth: Full tuition, fees, room and board annually–2 awarded each year
Eligibility: Full tuition, fees, room and board annually–2 awarded each year
Separate application needed: No

Benedict Scholarship
Total Worth: Full tuition, fees, room and board annually–2 awarded each year
Eligibility: Full tuition, fees, room and board annually–2 awarded each year
Separate application needed: No

Wilkins Scholarship
Total Worth: 25,000 annually–100 awarded each year
Eligibility: 25,000 annually–100 awarded each year
Separate application needed: No

Sewanee-The University of the South provides aids at an average of 37018 per student meeting 92% of students need. 100% of students with need receive financial aid at an average of 31211 need-based grant. They also provide other scholarships including Fellowship in the Arts.