Mixed News on State Student Aid

College financial assistance rose over all in 2009-10, but many states cut need-based grants as their economies struggled.
July 11, 2011

State spending on financial assistance to students increased by 3.8 percent in 2009-10, even as many governments struggled with recession-driven cuts in many programs. But nearly half of all states cut back on their all-important spending on need-based financial aid, even as enrollments boomed and as many students and families struggled financially.

Those are among the key findings of the annual report on state financial aid spending by the National Association of State Student Grant and Aid Programs, released today.

In all, states raised their spending on student financial assistance of various types -- need-based and non-need-based grants, and nongrant aid -- to $10.8 billion in 2009-10, up about 3.8 percent (6.0 percent in constant dollars) from $10.4 billion in 2008-09.


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