College & Workforce Readiness

States Gave More Aid for Higher Education Last Year, Report Says

By Julie Blair — May 12, 1999 3 min read
  • Save to favorites
  • Print

State governments collectively raised financial aid for college students by nearly 10 percent last school year, according to the National Association of State Student Grant and Aid Programs.

States spent $3.4 billion on need-based and non-need-based grants for undergraduate and graduate students in 1997-98, up from $3.1 billion in 1996-97, the group says in a report released this month. Ninety-eight percent of the aid was awarded to undergraduates; 2 percent went to graduate students.

While funding for need-based undergraduate aid increased by 8 percent, money spent on non-need-based aid jumped 24 percent, the report states. The majority of all non-need-based funds are merit aid, money awarded to students who achieve academically or excel in athletics.

For More Information

The National Association of State Student Grant and Aid Programs’ report, “State-Funded Scholarship/Grant Programs for Students to Attend Postsecondary Education Institutions,” is available for $20 by calling (518) 474-3471.

“Overall, we’re pleased to see that need-based aid did go up,” said Ron Gambill, the president of NASSGAP and the executive director of the Tennessee Student Assistance Corp. “There is always a concern that we make sure we take care of the needy students.”

Most aid continued to be awarded on the basis of financial need, although the percentage dropped from 84 percent to 82 percent of the total.

Seven states--Alabama, Florida, Georgia, Louisiana, Montana, New Mexico, and North Carolina--allocated more money for non-need-based aid than for need-based aid.

Georgia, for example, spent $208 million on non-need-based programs through its HOPE Scholarship program and only $1 million on need-based aid, the report shows. Florida allocated nearly $99 million for non-need-based aid and some $36 million to need-based aid. In both states, students who achieve B averages in high school are given scholarships to any public or private in-state college or university.

Georgia and Florida states are credited with providing templates for merit-based financial-aid programs and kick-starting a national trend.

Such programs “reward good students ... and encourage students to go to school in state,” said Arlene Hannawalt, the director of the Montana Guaranteed Student Loan Program.

Montana lawmakers have offered students in the top 4 percent of their high school classes a full year of free tuition at an in-state public college, a program in existence for the past 20 years, and they continue to push for additional money for the program, Ms. Hannawalt said. Four bills that were introduced in the legislature this year, but failed to pass, would have made the cost of higher education even more affordable for bright students and those in the middle class, she said.

“That’s the most [legislation in this area] we’ve ever had in my 13 years,” Ms. Hannawalt said.

Need vs. Merit

But critics of merit-based programs say they neglect poor students who graduate from lesser-quality high schools while diverting aid to middle- and upper-class families, thereby fostering a more elite system of higher education. (“More College Aid Going to Top Students,” Feb. 17, 1999.)

“While it is certainly good news that there is an increase in spending on student aid, [much of the money] is going towards non-need-based programs, and that’s of some concern,” said Jamie P. Merisotis, the president of the Washington-based Institute for Higher Education Policy.

California, Illinois, New Jersey, New York, and Pennsylvania contributed the most need-based financial aid during the 1997-98 school year, the report says.

Those states have the highest number of college enrollments nationwide, a history of ensuring that needy students have access to college, and “political coalitions that have supported need-based aid,” Mr. Merisotis said.

Related Tags:

A version of this article appeared in the May 12, 1999 edition of Education Week as States Gave More Aid for Higher Education Last Year, Report Says

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
From Passive to Active Reading: Student Engagement in the Age of AI
What the research tells us about active reading and student engagement—and what it means for teaching in an AI-enabled world.
Content provided by Pearson
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Professional Development Webinar
Micro-Learning, Macro Results: Reimagining Professional Learning
Rethink professional learning with 3 strategies that personalize professional learning, validate expertise, and support educator retention.
Content provided by Mira Education & Modiv EDU
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School Climate & Safety Webinar
There But Not Present: Rethinking Student Engagement
Learn how to recognize the early signs of disengagement and what the behavioral science reveals about which interventions actually work.
Content provided by Frontline Education

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Quiz
Quiz Yourself: How Much Do You Know About Dual Enrollment?
Answer 7 questions about dual enrollment.
Content provided by Pearson
College & Workforce Readiness Transportation Is a Challenge for CTE Programs. How Districts Are Solving It
One district found innovative ways around this barrier.
4 min read
A school bus crosses over U.S. 160 from the Navajo Nation, left, onto the Hopi reservation, right, Monday, March 4, 2024, in Tuba City, Ariz. U.S. Highway 160 is the de facto border between the Navajo and Hopi Indian reservations and two time zones. Mind-bending time calculations is what people in the largest Native American reservation in the U.S. have to endure every March through November. The Navajo Nation, which stretches into Utah and New Mexico, will reset clocks for one hour later despite the rest of Arizona remaining on standard time.
A school bus crosses over U.S. 160 from the Navajo Nation, left, onto the Hopi reservation, right, on March 4, 2024, in Tuba City, Ariz. For school districts that offer offsite work-based learning experiences, transportation is a key challenge.
Matt York/AP
College & Workforce Readiness Why Schools, Colleges, and Employers Aren't Connected on Career-Technical Education
Too much data on education and the labor market exist in silos, a new report finds.
6 min read
South Career and Technical Academy student ambassadors and student councils hand out wristbands to new students as they arrives at CCSD’s newest high school, opening its doors for the 2025-2026 school year, on Aug. 11, 2025 , in Las Vegas .
South Career and Technical Academy students hand out wristbands to new students as they arrive at their school system's newest high school on Aug. 11, 2025, in Las Vegas. A new report recommends that school, college, and workforce leaders break down silos in their data, in order to better coordinate career-technical education goals.
Bizuayehu Tesfaye/Las Vegas Review-Journal via TNS
College & Workforce Readiness How Can Schools Connect Students to Careers? A New Compact Has a Plan—and Money
The compact comes at time of rising uncertainty for young workers due to AI.
5 min read
Leaders in education have a panel discussion about offering a path for students from schools into careers.
Industry leaders discuss the new Compact for America’s Youth during a launch event in Washington on Sept. 10, 2026. The compact brings organizations together to work on solutions to scale up career-connected learning.
Courtesy of CareerWise