States increase funding for student financial aid

A new survey from the National Association of State Student Grant and Aid Programs found that many states are distributing more funds to student financial aid to make post-secondary education affordable.

In the 2017-18 academic year, states provided approximately $13.6 billion in student financial aid, an increase of 6.6% in nominal terms from the previous year.

In the previous academic year, states spent $12.8 billion in aid.

Funding for need-based undergraduate scholarships increased by 7% in nominal terms, from $8.4 billion in 2016-17 to approximately $8.9 billion in 2017-18.

Most state aid was in the form of grants. About 75% of the grants were needs-based and 25% were non-needs-based.

Nearly half of state funding for need-based undergraduate grants came from California, New York, Texas, New Jersey, Pennsylvania, Illinois, Virginia, and Washington.

States have spent around 1.7 billion euros in support for students without grants, including loans, loan support, conditional grants, work-study studies and tuition waivers.

Over the past decade, higher education institutions have experienced a decline in state funding, which began after the Great Recession of 2008. Compared to state funding before the recession, 41 states spent $1,220 $, or 13% less per student between 2008 and 2018.

There has been increasing pressure on states to increase funding for public two- and four-year colleges and develop craft funding formulas that focus additional state funds on building college capacity with the fewest resources. .

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