By Louisa Woodhouse, Senior Associate, Policy and Advocacy
Reading time: 12 minutes
The National College Attainment Network’s (NCAN) Affordability Gap research examines the affordability
landscape at community colleges and public bachelor’s-granting institutions across the country. This annual analysis reaffirms that for many students, especially those from low- and moderate-income backgrounds, cost remains a major barrier to attaining
a degree or credential.
This year’s Midwest spotlight report compares the Great Lakes states of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin to identify the scope of unmet financial need for students in the region and to explore how increased funding and policy
changes could help put public postsecondary education within reach for students and families.
Key Takeaways
In every Great Lakes state except Illinois and Minnesota, students face affordability gaps greater than the national average of $1,555.
Five out of six Great Lakes states have a smaller percentage of affordable public bachelor's-granting institutions than the national average of 35% of postsecondary institutions.
In two states (Ohio and Wisconsin), the affordability gap for students at public bachelor's-granting institutions is more than twice the national average.
Still, a subset of states have committed to making community college more affordable. In Ohio, Indiana, and Michigan there is no affordability gap, on average, for students to attend community college.
State level policy and funding choices could impact students’ postsecondary decision-making in future years. If states continue to prioritize investment in the community college sector, low-income students may be incentivized to pursue an associate’s
degree over a bachelor’s degree. Because bachelor’s degrees continue to offer a higher earnings premium over the long term, maintaining affordability across
both sectors is critical to ensuring access to economic opportunity. Sustained investment in both sectors—and in need-based financial aid—will be essential to closing affordability gaps, supporting degree completion, and ensuring that students across
the Midwest can access the full range of postsecondary pathways. Minnesota and Michigan initiated new need-based student aid programs in the past two years, and these investments are likely to improve affordability for students from low-income families
in the Midwest going forward.
Context
While affordability varies dramatically between states, the Midwest continues to stand out as a region where students face significant financial burdens when it comes to covering the cost of postsecondary education. NCAN’s Affordability Gap analysis found
that for the 2022-23 academic year, students experienced larger average affordability gaps at public bachelor’s-granting institutions in Indiana ($2,071), Michigan ($2,268), Wisconsin ($3,549), and Ohio ($5,138) than nationally ($1,555). NCAN’s model
also found that in comparison to the national average ($486), community college students faced greater unmet need in Minnesota ($1,191), Wisconsin ($1,336), and Illinois ($2,063).
These findings are consistent with other analyses of higher education funding in the Midwest, which shine light on the cost barriers documented in NCAN’s annual report. In the Great Lakes region, the affordability
landscape is driven primarily by a lack of investment in higher education, and a reliance on tuition pricing to generate revenue for Midwestern states’ public colleges and universities.
On average, Midwestern states depend more heavily on net tuition revenue to fund public higher education than their counterparts in other regions of the country. Net tuition revenue refers to the revenue resulting from the tuition cost paid by students
and families, after accounting for student aid. In 2024, nearly half (48.5%) of public higher education funding in the Midwest came from net tuition revenue,
compared to around 30% in the West, and closer to 40% in the South, Northeast, and nationally. When states rely on net tuition revenue to fund their higher education budgets, the burden is shifted to students who in turn, face higher costs of tuition
and increased unmet need. This “student share” brings in more than half of all funding for public higher education in Indiana (63%), Michigan (59%) and Ohio (57%).
Though students many Midwest states face larger than average financial barriers, the cost of college remains a central concern for many state policymakers. While some Great Lakes states have increased investments in higher education and need-based aid,
others have retracted funding in recent years, leading to uneven progress across the region. The following state-level findings from the Affordability Gap report explore differences in college costs and average unmet need across the states, and highlight
recent policy developments that may influence the affordability landscape moving forward.
NOTE: Varying sample sizes may impact the statistics seen at the state level. For more details on which institutions were included in the sample, please see our data dashboard.
State-Level Findings
Illinois (n = 52, 11 public bachelor’s-granting institutions, 41 community colleges)
In 2022-23, 34% of community colleges were affordable.
The average affordability gap for these institutions was $2,063.
In Illinois, 55% of public bachelor’s-granting institutions in our sample were affordable.
The average public bachelor’s-granting institution was affordable by a margin of $90.
Illinois stands out in the Great Lakes region as the only state in the 2022-23 sample where public bachelor’s-granting institutions were, on average, affordable. This finding is a testament to the state’s investment in higher education appropriations:
only 27% of funding for public higher education in Illinois comes from net tuition revenue, compared to 48.5% on average for Midwestern states. In NCAN’s analysis, Illinois performed less well when examining community colleges, with the largest average affordability gap among Great Lakes states ($2,063). Just over a third of community colleges were within
financial reach for students – a similar proportion as in the national sample.
The Illinois FY26 budget, signed into law by Governor JD Pritzker (D) over the summer, strengthens investment
in public higher education and need-based student aid, providing a $10 million (or 2.9%) increase to the Monetary Award Program (MAP).
MAP funding benefits an estimated 145,000 students in Illinois each year, with a maximum award amount of over $8,000. The grant is available
to students with demonstrated financial need at public and private colleges and universities in the state – though because the state awards funds on a first-come, first-serve basis, some financially eligible students miss out on grant aid. Continued
investment in need-based student aid will help address the existing affordability gap at Illinois public institutions.
Indiana (n = 11, 10 public bachelor’s-granting institutions, one community college)
In NCAN’s sample, 100% of community colleges were affordable.
On average, community colleges were affordable by a margin of $518.
Only 20% of public bachelor’s-granting institutions were affordable.
The average affordability gap at these institutions was $2,071.
Indiana only had one community college with full data in our sample, which was more affordable than the national average. On average, Indiana’s public bachelor’s-granting institutions demonstrated wider affordability gaps than seen nationally, and a smaller
proportion of public bachelor’s-granting institutions (20%) were affordable, as compared to the national average. In Indiana, 68% of funding for public-bachelor’s granting institutions comes
from net tuition revenue, likely leading to the high levels of unmet need experienced by students in the state. Due to the relatively small number of Indiana institutions with complete data in NCAN’s sample, these findings may not be representative
of the broader cost of public higher education in the state.
Over the summer, Indiana Governor Mike Braun (R) announced that for the first time ever, all public colleges and universities in the state would freeze rates of tuition and mandatory fees for in-state students. The freeze, which will take place during the 2025-26 and 2026-27 academic years, received unanimous support from the Indiana Commission for Higher Education. While the policy was enacted in an effort to help
more low- and middle-income students access higher education, research suggests that tuition freezes can sometimes lead to increases in prices
for non-tuition expenses or increases in tuition pricing for out-of-state and international students. Coupled with recent cuts to education funding in Indiana’s FY25 budget, it is not yet clear how the policy will impact affordability in the state.
Michigan (n = 39, 16 public bachelor’s-granting institutions, 23 community colleges)
In NCAN’s Michigan sample, 43% of community colleges were affordable.
On average, these institutions were affordable by a margin of $306.
Only a quarter (25%) of public bachelor’s-granting institutions were affordable in the state.
The average affordability gap at these institutions was $2,268.
Michigan community colleges were affordable, on average, in the 2022-23 sample – in contrast to an average gap of $486 among community colleges nationally. In the Great Lakes region, Michigan was one of three states where students experienced an average
affordability surplus, rather than a gap, at community colleges. Public bachelor’s-granting institutions in the state exhibited greater affordability gaps, on average, than those nationally, and the second largest in the Great Lakes Region. In Michigan,
a smaller percentage of institutions in both the community college and public bachelor’s-granting sectors were affordable than in the NCAN sample overall.
Michigan has made strides in higher education investments over the last few years – most recently, focusing on students at community colleges. The state launched the Community College Guarantee in the Fall of 2024, as a new component of the Michigan Achievement Scholarship, implemented the year prior. In the first year of implementation,15,800 students received Community College Guarantee funds, with an average scholarship of $1,370 per semester. The Guarantee is available to Michigan high school graduates enrolled in a degree or credential program at a local community
college or Tribal college, regardless of income. The award also includes a bonus of $1,000 for Pell eligible students to cover the cost of non-tuition expenses, such as transportation or textbooks. Continued investment in need-based grant aid programs
will improve Michigan’s affordability outlook, helping students access postsecondary education.
Minnesota (n = 37, 12 public bachelor’s-granting institutions, 25 community colleges)
In the 2022-23 sample, 48% of community colleges in Minnesota were affordable.
The average affordability gap at these institutions was $1,191.
In this year’s analysis, 25% of public bachelor’s-granting institutions were affordable.
The average affordability gap at institutions in this sector was $1,359.
In the Minnesota sample, an equal percentage of community colleges met the NCAN affordability benchmark than those nationally, though students faced more than double the unmet need. Public bachelor’s-granting institutions in the state were more affordable
than those nationally, as students in Minnesota experienced smaller affordability gaps than those in NCAN’s sample overall. Among Great Lakes states, Minnesota had the second smallest average affordability gap for public bachelor’s-granting institutions.
Last fall, Minnesota implemented the North Star Promise grant – a need-based tuition-grant for students enrolled at any Minnesota public college or university whose family Adjusted Gross Income (AGI) is
below $80,000. The Minnesota Office of Higher Education reports that in its first year, the program benefited over 53,000 students.
The grant is a last-dollar scholarship, meaning funds cover the remaining cost of tuition following the application of other grant aid sources. Students received an average of $1,716. State leaders credit the program for helping contribute to Minnesota’s
first college enrollment increase in nearly a decade: enrollment grew at institutions across the Minnesota State
and University of Minnesota systems by 2%.
Ohio (n = 30, 16 public bachelor’s-granting institutions, 14 community colleges)
In the 2023-23 sample, the majority of Ohio community colleges (71%) were affordable.
On average, these institutions were affordable by a margin of $1,488.
Zero public bachelor’s-granting institutions met NCAN’s definition for affordable.
The average affordability at public bachelor’s-granting institutions was $5,138.
In this year’s sample, Ohio performed well when considering the percentage of affordable community colleges in the state. Among its Midwest neighbors, Ohio had the second highest percentage of affordable community colleges after Indiana (where the sample
was only one institution.) Public bachelor’s-granting institutions were particularly unaffordable in the Ohio sample, on average. The state exhibited the largest affordability gap in the Great Lakes region – more than three times the national average
gap for public bachelor’s-granting institutions.
Ohio’s need-based aid grant program, the Ohio College Opportunity Grant (OCOG), has received increases in state appropriations over the last few fiscal years. The grant is available
to Ohio students with high financial need – defined as a Student Aid Index of $3,750 or under and a maximum household income of $96,000. In FY25, the maximum grant amount increased from $3,200 to $4,000 for students and public colleges and universities. The program received a $20 million increase (or 11.8%) in FY26, yet a decrease in funds for the following fiscal year, per Ohio’s biennial budget. A taper in the availability of need based aid will pose a challenge for low-income students, who depend on stable and sufficient funding to afford the cost of a postsecondary degree.
Wisconsin (n = 28, 13 public bachelor’s-granting institutions, 15 community colleges)
In this year’s sample, only 13% of community colleges were affordable.
The average affordability gap at Wisconsin community colleges was $1,336.
There were zero affordable public bachelor’s-granting institutions in the state.
The average affordability gap for institutions in this sector was $3,549.
Community colleges and public bachelor’s-granting institutions were, on average, unaffordable for students in Wisconsin in 2022-23. The state exhibited the second largest affordability gap at public bachelor’s-granting institutions in the Great Lakes
states, and a gap of almost three times the national average for community colleges. In this year’s analysis, Wisconsin had the smallest percentage of affordable community colleges among Great Lakes states – and no affordable public bachelor’s-granting
institutions.
In Wisconsin, need-based tuition grants have helped students cover the cost of attending a public university, though these scholarship programs suffer from a lack of sustained funding. The University of Wisconsin system has re-instated the Wisconsin Tuition Promise program for the 2025-2026 academic year, which will cover tuition prices for students from families earning $55,000 or less, enrolled at one of 11 participating institutions. The Promise program, initially launched in 2023, was unavailable to students
last year due to funding challenges in the state. An estimated 1,300 students are expected to benefit from the Promise grants in the 2025-26 cohort – which is supported by funding from Ascendium Education Group and matching investments by participating institutions. Greater investment from the state is needed to continue the
Tuition Promise and would contribute to increasing affordability for Wisconsin students.
Conclusion
Across the Midwest, the cost of higher education continues to pose a significant barrier to access and attainment, particularly for students from low- and moderate-income backgrounds. This year’s findings highlight the importance of sustained and strategic
investment to reduce unmet financial need and ensure that all students can pursue and complete a postsecondary degree or credential. While affordability gaps remain in the Great Lakes states, recent developments—such as new need-based aid programs
in Michigan and Minnesota and continued investment in state grant programs in Illinois and Ohio—offer promising signs of progress toward a more affordable and accessible public higher education landscape in the years ahead.
NCAN’s Affordability Gap report is available here. The accompanying data dashboard can be found here.
Questions? Please contact Louisa Woodhouse, Senior Associate, Policy and Advocacy, at woodhouse@ncan.org.
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