41. Make all state aid need-based.

Finance 09.6.24

Here’s what the federal government can do:

  • The U.S. Department of Education should collect, conduct, and disseminate data on financial aid awards and scholarships that do not account for student financial need.

Here’s what state government can do:

  • State legislatures should require higher education institutions to prioritize aid granted based on financial need, rather than so-called merit.

Here’s what institutional leaders can do:

  • Higher education institutions should prioritize aid granted based on financial need, rather than so-called merit.
  • Higher education institutions should ensure that students with lower incomes have access to need-based scholarships.

Students of all income backgrounds should be able to access opportunities to succeed in higher education. Increasing funding for need-based aid, grants, and scholarships would help students with lower incomes to cover tuition, fees, and additional expenses that support them to stay in school. Research shows that Pell-eligible students, first-generation students, and students of color who receive scholarships have a 10 to 12 percent higher likelihood of graduating compared to their peers who do not.[i]


[i]Why Scholarships Are Vital for Low-Income Students and Families,” Scholarship America, August 1, 2023. https://scholarshipamerica.org/blog/why-scholarships-are-vital-for-low-income-students-and-families/.