Yeah, University of Tennessee does provide scholarships based on merit. Here are some of them:

Volunteer Scholarship
Total Worth: $7,500-$15,000
Eligibility: $7,500-$15,000
Minimum Criteria: 3.8 GPA,1330 SAT, 29 ACT
Requirement for maintenance: Maintain a 3.0 cumulative grade point average (GPA) and federal Satisfactory Academic Progress (SAP) and full time enrollment throughout each semester.
Application deadline: December 15

Provost Scholarship
Total Worth: $2,000 per year
Eligibility: $2,000 per year
Requirement for maintenance: Maintain full-time enrollment during each semester of receiving scholarship, GPA: 3.5
Application deadline: December 15

University of Tennessee provides aids at an average of 14137 per student meeting 64% of students need. 100% of students with need receive financial aid at an average of 12128 need-based grant. They also provide other scholarships including Tennessee Pledge Scholarship and UT Promise Scholarship.