When it comes to reducing the cost of college, students and their families have several funding options to pursue through the federal government, their state or their institution.
State aid typically fills in “those gaps between what the federal government and institutions can provide and helps students be able to afford college,” says Lee Andes, director of finance policy and innovation at the State Council of Higher Education for Virginia.
State aid often consists of scholarships, grants and tuition waivers, while federal financial aid includes grants, work-study and loans.
Seventy-four percent of total undergraduate state grant aid was need-based in 2022-2023, with 22 states considering students’ financial circumstances when issuing at least 95% of state grant aid, according to data collected in the College Board’s annual research brief, “Trends in College Pricing and Student Aid 2024.”
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“Federal financial aid is offered by the federal government to eligible students regardless of whether the student studies in their own state or another state,” Margo Chaly, executive director of New Jersey Higher Education Student Assistance Authority, wrote in an email. “Whereas state aid is offered by state governments and is typically only available to residents of that state who choose to remain in-state for their college education.”
Here’s what to know about state aid, including eligibility requirements and deadlines to note.
Average State Financial Aid Awards
The average state grant aid — which does not have to be paid back — for full-time-equivalent undergraduate students rose from $870 to $1,180 between 2012-2013 and 2022-2023, according to the College Board report. Seven states gave an average of under $200 per student in 2022-2023, while eight states provided an average of more than $2,000.
During that academic year, Montana offered the lowest amount of grant aid among all states — an average of $20 per student — while New Mexico provided the most, an average of $3,720, per the College Board report.
“State aid helps make college more affordable for students seeking a postsecondary degree that can help them earn more over the course of their lifetimes,” Chaly says.
Examples of State Aid Programs
Grants
Many states have a flagship grant program, as well as additional programs specific to the individual state, notes Diona Brown, director of Pennsylvania School Services at the Pennsylvania Higher Education Assistance Agency.
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The PA State Grant, for example, is a four-tier system based on the cost of the college and a grant applicant’s student aid index — with a maximum in-state award of $5,750 in 2024-2025.
Students don’t have to attend a four-year institution to qualify for aid. Eligible students in New Jersey, for instance, can attend community college tuition-free as part of the state’s Community College Opportunity Grant. Students need to be a New Jersey resident with an adjusted gross income of $65,000 or below; enroll in at least six credits at a community college in the state; and maintain satisfactory academic progress toward their degree.
Scholarships
Maryland offers a 2+2 Transfer Scholarship to encourage community college students in the state to complete their bachelor’s degree at one of the state’s four-year institutions. Eligible residents can receive between $1,000 and $2,000 per year, depending on their area of study.
Last-Dollar Assistance
Similarly, Virginia’s G3 program provides last-dollar tuition assistance to residents pursuing a community college program in one of the following industries: health care, information technology, education, hospitality and culinary arts, manufacturing and construction, or public safety and skilled trades.
“Different states will incorporate different strategies,” Andes says. “Are they trying to encourage merit? Are they trying to address financial need? Are they trying to address workforce shortage areas, or a combination of all three?”
Tuition Waivers
Those pursuing a career in special education may qualify for the Illinois Special Education Teacher Tuition Waiver Program, for instance, which covers the cost of tuition and fees for up to four years at select institutions in the state. While unlikely, tuition waiver recipients who do not complete the program’s teaching requirements must repay the cost of their education with interest.
Eligibility Requirements for State Aid
Eligibility looks different in each state. However, all students who want to be considered for certain financial aid must first fill out the Free Application for Federal Student Aid, or FAFSA.
“We advise students to complete that form as soon as it comes out every year,” Brown says. The FAFSA is typically released every Oct. 1, but there have been delays over the last two years.
When to Apply for State Financial Aid
Financial aid deadlines — which are listed on the U.S. Department of Education’s Federal Student Aid website — vary by state. The deadline for Delaware residents to submit the 2025-2026 FAFSA, for instance, is June 15, but priority consideration in some states may be months earlier.
Don’t “risk leaving money on the table that could help you afford a college degree,” Chaly says. “Make sure to complete the FAFSA by your state’s applicable deadline to see what financial aid you might be eligible to receive from your state and any other sources.”
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How to Find State Financial Aid
For questions about eligibility requirements and available aid, visit the websites of your state education agency and educational institution, or talk with a high school counselor, experts say.
“The best strategy for a student is to talk with their financial aid office and ask specific questions,” Andes says, “because sometimes the answers will vary not only by state, but by institution.”
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State Aid for College: What to Know originally appeared on usnews.com
