Study: Majority of Students Now Have Federal Aid

The proportions of American undergraduates who received federal financial aid (57 percent) or at least some form of financial aid (71 percent) in 2011-12 both rose considerably from 2007-8, when the proportions were 47 percent and 66 percent, respectively, a new federal report shows.

The National Postsecondary Student Aid Study, which the U.S. Education Department's National Center for Education Statistics releases every four years, provides a wealth of data about how students are financing their higher education, based on a survey of about 100,000 students.

Among other findings:

• About 40 percent of students borrowed federal loan funds in 2011-12, up from 35 percent in 2007-8. The average amount they borrowed rose to about $6,400 from about $5,000.
• The proportion of students on federal grants rose sharply, to 42 percent from 28 percent, due to a significant expansion (now partially undone) in funding and eligibility criteria for Pell Grants.
• The proportion of students on state grants remained largely flat, at 15 percent, but the percentage of full-time dependent students on state grants dipped to 26 percent from 29 percent, as some states contracted their aid funds.