State Financial Aid Increased 12% in 2023–24

States awarded $18.6 billion in aid to students during the 2023–24 academic year, a 12 percent increase from the previous academic year, according to the National Association of State Student Grant and Aid Programs’ annual report.

“The robust 12% increase from the prior year is further evidence that states understand the importance of postsecondary education and of ensuring every student is able to acquire the 21st century skills needed to drive their state’s economy,” said NASSGAP president Elizabeth McCloud in a news release.

About 86 percent of that funding came in the form of grants—three-quarters of which were need-based. More than two-thirds of all need-based grants came from eight states—California, Illinois, New Jersey, New York, Pennsylvania, Texas, Virginia and Washington.

The remaining $2.5 billion of nongrant aid included loans, loan assumptions, conditional grants, work-study and tuition waivers, with tuition waivers comprising 44 percent of nongrant aid.