Most funding from states comes in the form of grants.
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According to the National Association of State Student Financial Aid and Aid Programs’ annual report, states provided $18.6 billion in aid to students in the 2023-24 school year, a 12% increase from the previous school year.
“This strong 12 percent increase from the previous year is further evidence that states understand the importance of higher education and ensure every student has access to the 21st century skills needed to drive their state’s economy,” NASSGAP President Elizabeth McCloud said in a release.
About 86% of that funding is in the form of grants, three-quarters of which are need-based. More than two-thirds of all need-based grants come from eight states: California, Illinois, New Jersey, New York, Pennsylvania, Texas, Virginia and Washington.
The remaining $2.5 billion in non-grant aid includes loans, loan assumptions, conditional grants, work-study and tuition remission, with tuition remission accounting for 44% of non-grant aid.
