Higher education remains unaffordable for many students across the country, and many families and students today are shouldering a greater proportion of the financial burden when it comes to covering the cost of attendance.
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 over $14 billion annually in
financial aid, giving them significant influence over the affordability landscape. A large and growing body of research shows that need-based financial aid increases college persistence. However, need-based grant 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 backgrounds 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.
The National College Attainment Network (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, or Free Application for Federal Student Aid, 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, and/or community service requirements, for obtaining or maintaining awards.
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