Ten state policy recommendations for student-centered financial aid systems¶

Strategy · All strategies
Evidence · 1 claim (1 mixed) · 1 study (1 associational), q2 · 0 of 1 report an effect size · 1 claim rests on one study

Description¶

The report recommends that state policymakers design aid systems to prioritize need-based aid, cover costs beyond tuition and fees, set eligibility meeting the needs of today's students, allow access for undocumented and formerly incarcerated students, avoid punishing students with debt, ensure all public-college students can access aid, consolidate grants into one need-based grant, leverage negative Student Aid Index numbers, and support college attendance. It argues policymakers should "design programs that better meet the needs of today's students, who are more likely to be older adults, full-time workers, parents, people of color, veterans, or come from rural areas and low-income backgrounds."

Design Implications¶

Context¶

Requirements¶

• State policymakers control aid allocation and eligibility requirements, so implementation depends on state legislative and agency action

Constraints¶

• The report frames urgency around federal turmoil: Department of Education staff cuts and a 2025 reconciliation bill weakening federal aid and loan repayment

Target Learners¶

• today's students, including older adults, full-time workers, parents, people of color, veterans, rural and low-income students

Target Learning Goals¶

• postsecondary access
• affordability
• degree and credential completion

Claims¶

• Participation rates rose with eligibility index score, reflecting program prioritization [~W]

Related Strategies¶

• Consolidate non-Pell federal aid into a new state education grant tied to five state policy commitments and student responsibility requirements
• Supplement grant aid with academic or social supports, favor need-based over merit-only allocation, and avoid front-loading aid

Examples¶

-

Key Sources¶

• Victoria Jackson. (2025). An Overview of State Financial Aid in Illinois, Indiana, and Minnesota. EdTrust. https://eric.ed.gov/?id=ED678857