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 |
| Need-Based Grants, |
|Need-based Grant as % of Total Aid|
Source: National Association of State Student Grant and Aid Programs
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