Many families are aware of the aid the federal government provides to college students. But did you know that states also have financial aid available for college students?
In 2018-2019, states awarded an average of $930 per full-time-equivalent undergraduate student in the U.S., according to the College Board’s Trends in College Pricing and Student Aid 2020 report. This continues a seven-year trend of rising state grant aid. But as state budgets see significant cuts in response to the economic impact of the coronavirus pandemic, experts say the trend may pause or reverse.
Still, state financial aid programs can play a role in increasing college accessibility for students with financial need, supporting student groups such as adult learners and providing merit aid for students with strong academic backgrounds.
State Financial Aid
Many states use the FAFSA to determine eligibility for their financial aid programs, but some states have additional requirements and some offer a separate application for individuals who cannot submit a FAFSA, typically due to citizenship requirements.
State deadlines to submit the FAFSA and be eligible for state aid are often much earlier than the federal FAFSA deadline.
While the average state grant awarded across the U.S. in 2018-2019 was $930, some states offered much more aid and some provided much less. Each state distributes this money differently. Some states provide the aid directly to students while others distribute it indirectly through the colleges and universities.
Types of State Financial Aid
States offer many different kinds of financial aid. The most common types of aid are need-based grants, but some states also offer merit-based grants, scholarships, educational loans and tuition waivers.
The College Board reports that in 2018-2019, 26 states considered students’ financial circumstances in allocating at least 95% of their state grant aid, while 13 states plus Washington, D.C., weighed students’ financial circumstances when awarding less than half of their state grant aid.
COVID-19 and State Financial Aid
In the short term, some states have created grants and emergency assistance programs to support students and others affected by COVID-19, the disease caused by the novel coronavirus. Michigan, for example, created Futures for Frontliners, a scholarship program that provides free tuition to individuals who worked in essential industries during the state’s COVID-19 shutdown in spring 2020.
While some states may see more students competing for financial aid as families struggle to afford college amid circumstances like job loss, other are seeing fewer undergraduate students pursuing college degrees.
Where to Find State Financial Aid
It’s not that difficult to find out about your state’s financial aid opportunities. You can search on your state’s education website or you can use this easy map guide provided by U.S. News and Education.