By Catherine Brown, Senior Director of Policy and Advocacy
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State financial aid is a critical piece of college affordability for students from low-income backgrounds. Nearly three quarters of all students attend college in their home state - which is typically a requirement for state-based financial aid - and
first-generation and students from low-income backgrounds are even more likely than their peers to attend college locally. As a result, nearly 40% of students at four-year public institutions receive some kind of state or local grant
aid. On average, first-time, full-time students at public four-year institutions receive $4,600 in state or local grant aid and students at two-year institutions receive $2,300. In total, states award almost $14.8
billion in student aid per year.
Despite these large numbers and the importance of state financial aid for many students, there is far less scrutiny on these programs than on federal financial aid. The result is a patchwork of 50 different state systems with lots of variation. For example,
state grant aid per full-time equivalent student ranges from $10 in Montana to $2,400 in Georgia. The cost of attendance for students from low-income backgrounds who receive the maximum award can also vary significantly by state, due to variance in
tuition, the generosity of state aid, and local cost of living.
In addition to grant amounts, the design of state financial aid programs also varies significantly. Programs can be merit-based, need-based, or a combination of the two; there may be eligibility restrictions or requirements students must meet to retain
their awards; and the paperwork can be lengthy or simple to complete. Furthermore, while federal financial aid is available to nearly all students who fall below Congressionally determined income thresholds, many states have financial aid programs
targeted at specific populations or designed to achieve narrow policy goals, often each with their own set of rules and requirements.
The National College Attainment Network (NCAN) is releasing this report describing the effective features of state
financial aid programs as a resource for our members working on advancing college affordability through state policy. This paper is the first installment in our new State Policy Resource Library, which will grow over the year to include
primers on administrative barriers in state financial aid, merit vs. need-based designs, and more, along with how-to guides on key policy advocacy skills, such as coalition-building, working with the media, lobbying rules, and more. We hope these
tools and resources will be helpful to you and look forward to working with you to make college more affordable for all students.
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