Latest News: State Policy & Advocacy

Indiana Steps Up Student Aid

Monday, February 2, 2026  
Posted by: MorraLee Keller, Senior Consultant

Reading time: Six minutes

Indiana welcome sign

Students and adults choosing a college or career pathway often need support, and various states have been providing different types of programs and funding to help those pursuing a postsecondary education and/or training. Indiana has built the mechanisms to help their residents meet their goals, with a clear focus on developing a strong workforce to support the needs of the state.

The 21st Century Scholars program, established in 1990 in Indiana, has maintained bipartisan support over the past three and a half decades and is considered one of the earliest “promise” programs in the country. The program covers up to 100% tuition for Indiana residents who enroll at public institutions or partial grants for those attending private institutions. Originally, students completed an application while in middle school, but legislation in 2023 now automatically enrolls all eligible students (those who meet the criteria for the free/reduced lunch program) by the end of their 8th grade year. This automated process jumped enrollment from around 20,000 to 50,000 students per cohort. Students have milestones to complete while in high school, including completing the Free Application for Federal Student Aid (FAFSA).

The state funding for this program is projected to last until 2031 and at that point they will likely need an increase in dollars to support the additional students being enrolled. Approximately 78% of these scholars attend college, a rate that is nearly 50 percentage points higher than their low-income peers who do not enroll. That rate is also 26 percentage points higher than the average state enrollment. Data also shows these students complete college at a higher rate than their peers.

In 2017, Indiana created Workforce Ready Grants as a pillar of the Next Level Jobs initiative. These last dollar grants cover the tuition and mandatory fees for eligible high-value certificate programs at approved providers. The grant is available for two years and covers up to the number of credits required by the qualifying program. The grant does not cover courses that do not directly apply to the student's certificate program, as well as program-specific fees and equipment. Over 47,000 students have been assisted through this program, and the state allocated $11.5 million for the current biennium. In 2025, the state legislature made a change that allows a student to receive a second grant if they have not completed an associate’s degree or higher. This change demonstrates the state’s focus on developing a strong, highly skilled workforce.

Indiana has had a long history of supporting career and technical education. The state allocation for this biennium has risen to approximately $450 million with an additional $64 million being available through the Perkins program. This effort helps to connect industry, workforce development, and education. Career and technical education (CTE) staff assist with the development and implementation of rigorous and relevant CTE programs of study that prepare students for a wide range of high-wage, high-skill, and in-demand careers.

CTE programs will be an integral part of the Indiana high school redesign program and the new Indiana Diploma with Readiness Seals. There are 70 available programs of study, and almost all programs offer embedded dual credit with Ivy Tech Community College or Vincennes University. Most programs offer the opportunity to earn a credential of value, including postsecondary certificates or industry certifications. (Note: Indiana appropriated an additional $2 million per year to reimburse schools for industry certification exam costs.)

The Indiana Commission for Higher Education oversees all the above-mentioned programs and receives strong state funding support from the legislature. This state can serve as a model for others wanting to provide strong and effective programs for their residents. The people of Indiana are fortunate to have these high-quality programs supporting their college and career pathways.


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