State Student Aid Spending Up 7%

Annual survey finds non-grant aid growing faster than need-based scholarships.
July 10, 2007
 

State spending on financial aid in 2005-6 rose by about 7 percent over the previous year, to $8.5 billion, an annual report by the National Association of State Student Grant and Aid Programs finds.

That is slightly less than the 8.1 percent increase that occurred from 2003-4 to 2004-5, and the growth shrinks further when inflation is taken into account. The increase from 2003-4 to 2004-5 amounted to an uptick of more than 5 percent when adjusted for inflation, while the rise from 2004-5 to 2005-6 was about 3 percent in inflation-adjusted dollars.

Funds for need-based grant aid rose by less than the total, about 5 percent, to about $7 billion in 2005-6 from about $6.7 billion in 2004-5. Funds increased significantly more -- by more than 15 percent -- for nongrant student aid, which includes loans, work study, and tuition waivers, among other things.

Seven states -- California, Illinois, Indiana, New Jersey, New York, Pennsylvania and Texas -- together distributed about $3.3 billion, or about 65 percent, of the undergraduate need-based grant aid distributed by all states.

The aid awarded by the 50 states, the District of Columbia, and Puerto Rico in 2005-6 follow:

State Total Aid, 2005-6
(000s)
Need-Based Grants,
2005-6 (000s)
Need-based Grant as % of Total Aid
Alabama $7,887 $5,281 67.0%
Alaska 77,518 502 0.6
Arizona 2 925 2,808 96.0
Arkansas 34,558 20,868 60.4
California 799,261 758,181 94.9
Colorado 77,131 55,116 71.5
Connecticut 93,207 39,038 41.9
Delaware 11,834 10,164 85.9
Florida 512,048 107,849 21.1
Georgia 477,791 1,401 0.3
Hawaii 21,174 410 1.9
Idaho 7,402 964 1.3
Illinois 390,270 355,417 91.1
Indiana 304,983 281,069 92.2
Iowa 59,261 53,446 90.2
Kansas 18,754 15,047 80.2
Kentucky 177,516 82,611 46.5
Louisiana 118,087 1,453 1.2
Maine 16,805 13,387 80.0
Maryland 93,938 78,125 83.2
Massachusetts 109,654 80,081 73.0
Michigan 284,003 90,377 31.8
Minnesota 270,903 130,921 48.3
Mississippi 31,236 2,215 7.1
Missouri 70,275 25,632 36.5
Montana 4,772 3,589 75.2
Nebraska 79,786 9,918 12.4
Nevada 59,015 13,482 22.8
New Hampshire 4,203 3,745 89.1
New Jersey 400,868 224,924 56.1
New Mexico 72,648 21,781 30.0
New York 937,079 877,797 93.7
North Carolina 259,664 142,993 55.1
North Dakota 2,348 1,492 63.5
Ohio 222,018 159,551 71.9
Oklahoma 151,565 47,742 31.5
Oregon 61,962 29,361 47.4
Pennsylvania 444,846 412,340 92.7
Puerto Rico 39,350 39,350 100.0
Rhode Island 12,883 12,883 100.0
South Carolina 257,934 46,311 18.0
South Dakota 3,367 0 0.0
Tennessee 177,174 51,270 28.9
Texas 523,263 399,506 76.3
Utah 48,024 6,604 13.8
Vermont 18,934 18,479 97.6
Virginia 223,884 90,458 40.4
Washington State 198,837 167,346 84.2
Washington, D.C. 33,856 3,320 9.9
West Virginia 87,304 24,721 28.3
Wisconsin 101,406 90,436 89.2
Wyoming 163 163 100.0
Total $8,495,573 $5,111,924 60.2%

Source: National Association of State Student Grant and Aid Programs

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