In the 2017-18 academic year, the states awarded about $13.6 billion in total state funded student financial aid

This report provides data regarding state-funded expenditures for student financial aid and illustrates the extent of efforts made by the states to assist postsecondary students. Information in this report is based on academic year 2017-18 data from the 49th Annual NASSGAP survey. 

Data Highlights

•In the 2017-18 academic year, the states awarded about $13.6 billion in total state funded student financial aid, an increase of about 6.6 percent in nominal terms and about 4.8 percent in constant dollar terms from the $12.8 billion inaid awarded in 2016-17.

•The majority of state aid (87 percent) remains in the form of grants. In 2017-18, about 4.2 million grant awards were made representing about $11.9 billion in need and non need-based grant aid. This represents an increase of about 8.6 percent from the $11 billion in grants awarded in 2016-17. Of the grant money awarded in 2017-18, about 75 percent was need-based and 25 percent was non need-based, about the same percentage breakout as last year.

•Funding for undergraduate need-based grant aid increased nationwide from $8.4 billion in 2016-17 to about $8.9 billion in 2017-18, an increase of about 7 percent in nominal terms.

•Eight states (California, New York, Texas, New Jersey, Pennsylvania, Illinois, Virginia, Washington) collectively awarded about $6 billion in undergraduate need-based grant aid, accounting for about 68 percent of all aid of thistype.

•States provided about 1.7 billion in nongrant student aid, including loans, loan assumptions, conditional grants, work-study, and tuition waivers. Tuition waivers represented about 45 percent of nongrant aid. 

Most states reported state-funded undergraduate grant program with a need component, however, two states (Georgia and New Hampshire) reported no need-based aid programs. Twenty-three states identified undergraduate programs which made awards based only on merit. Exclusively need-based aid constituted 45.1 percent of all aid to undergraduates, exclusively merit-based aid accounted for 18.7 percent, with the rest, 36.2 percent, accounted for by other programs and by programs with both need and merit components. South Carolina, Georgia, Louisiana, Tennessee, and Virginia provided the greatest amount of grant aid on a per capita basis. South Carolina, Georgia, Louisiana, Tennessee, and New Jersey provided the most undergraduate grant dollars compared to undergraduate full time equivalent enrollment. Excluding Washington D.C., South Carolina, Louisiana, Virginia, Pennsylvania, and Tennessee had the highest proportion of total expenditures for state-funded grants compared to State fiscal support for higher education.