By some indications, the issue of college affordability is improving. The annual growth in sticker prices for tuition has slowed in both public and private nonprofit colleges, student borrowing has declined for the eighth year in a row, and the average grant aid awarded per student has been on the rise. But according to two annual reports from the College Board that track trends in student aid and college pricing, unresolved issues remain.
The annual reports — “Trends in Student Aid” and “Trends in College Pricing,” released today — provide the necessary context to see the bigger picture of college affordability and access. Notably, the trends in student aid report found the share of federal aid that is need-based has declined, from 91% in 1988-98 to 33% in 2018-19.
“This trend in federal student aid is noteworthy despite the fact that much of the non-need-based aid relieves significant financial strain on students and families,” the trends in student aid report said.
While the share of federal aid that is need-based has declined — in part due to the introduction of things like unsubsidized federal loans, education tax credits, and the Parent and Grad PLUS Loan Programs — many states have shifted to a need-based focus. In 2017-18, more than half of states considered financial need in allocating at least 95% of their grant aid, and another 13 states considered financial need for less than half of their grant aid.