The price of higher education is ever rising and students, generally, are bearing a greater proportion of this financial
burden; all the while, attainment is more important now than ever before. Unfortunately, students who require financial assistance to attend higher education have far worse outcomes than their peers from higher-income families.
By investing in need-based aid, states can support students who wish to pursue education after high school but may not have the financial means to do so.
States provide more than $12 billion annually in financial aid, giving them great influence over college affordability. A large and growing body of research shows that need-based financial aid increases college persistence. But this funding is not always distributed in ways that will maximize postsecondary attainment. Students benefit when state financial aid programs are:
- Generous – covers costs above and beyond tuition and fees and structured as a first dollar program to allow Pell-eligible students to use their federal grant aid for living expenses.
- Targeted – available to students from low-income households and those for whom the price tag stands in their way of pursuing a degree.
- Streamlined and Simplified – where programs are consolidated and easy-to-access with straightforward and clear eligibility requirements.
NCAN recommends that states:
- Implement a first-dollar program that covers all tuition and fees before applying federal or other state grant aid.
- Allow for federal need-based aid (including the Pell Grant) and state need-based aid programs beyond “free” college to cover non-tuition and fee expenses included in the full cost of attendance.
- Provide aid to dependent and independent students of any age, enrolled full and half-time, in associate and bachelor’s degree programs.
- Set a lifetime eligibility limit no shorter than 150% of the degree length.
- Allow students to access state financial aid by completing the FAFSA, without an additional application.
- Consolidate state financial aid programs and align their rules and requirements for obtaining and maintaining financial aid with those of federal grants. Do not require students to navigate complex rules that vary by program to maintain financial aid.
- Do not impose additional requirements, such as minimum GPAs (beyond standard academic progress, SAP), criminal background checks, community service requirements, for obtaining or maintaining awards.
Need-based student aid resources:
