Fast Facts: Financial aid (31)

Financial aid

Question:
Do you have any statistics on financial aid for postsecondary undergraduates?

Response:

Grants and loans are the major forms of federal financial aid for first-time, full-time degree/certificate-seeking undergraduate students. These are distinct forms of financial aid. Loans typically have to be repaid, whereas grants do not. The largest federal grant program available to undergraduate students is the Federal Pell Grant program. A student must demonstrate financial need to qualify for a Federal Pell Grant. Some federal loan programs are available to all students, and some are based on financial need. Other sources of financial aid include state and local governments, institutions, and private sources, as well as private loans. The forms of financial aid discussed in this Fast Fact are only those provided directly to students. For example, student loans include only loans for which the student is the designated borrower. Student loans do not include Direct PLUS Loans¹ or other loans made directly to parents.

At 4-year degree-granting postsecondary institutions overall, the percentage of first-time, full-time degree/certificate-seeking undergraduate students awarded financial aid increased from 85 to 87 percent between academic years 2009–10 and 2019–20.² However, changes differed by control of institution (i.e., public, private nonprofit, and private for-profit). Between 2009–10 and 2019–20, the percentages of students awarded aid increased at public institutions (from 82 to 85 percent) and at private nonprofit institutions (from 89 to 90 percent). In contrast, the percentage decreased from 92 to 87 percent at private for-profit institutions over the same period.

Percentage of first-time, full-time undergraduate students awarded financial aid at 4-year degree-granting postsecondary institutions, by control of institution: Academic years 2009–10, 2014–15, and 2019–20

The data in this figure is described in the surrounding text.

NOTE: Data represent the 50 states and the District of Columbia. Degree-granting institutions grant associate’s or higher degrees and participate in Title IV federal financial aid programs. Student financial aid includes any federal and private loans to students and federal, state/local, and institutional grants. Student loans include only loans made directly to students; they do not include Parent PLUS Loans or other loans made directly to parents. Data through 2009–10 are for students receiving aid. Students were counted as receiving aid only if they were awarded and accepted aid and their aid was also disbursed. Beginning in 2010–11, data are for all students awarded aid. Although rounded numbers are displayed, the figures are based on unrounded data.

At 2-year degree-granting postsecondary institutions overall, the percentage of first-time, full-time degree/certificate-seeking undergraduate students awarded financial aid increased from 75 to 82 percent between academic years 2009–10 and 2019–20. The percentages also increased at public institutions (from 70 to 81 percent) and at private nonprofit institutions (from 89 to 94 percent). In contrast, the percentage of students awarded aid at private for-profit institutions was 88 percent in both 2009–10 and 2019–20, fluctuating between 84 and 91 percent in the intervening years.

Percentage of first-time, full-time undergraduate students awarded financial aid at 2-year degree-granting postsecondary institutions, by control of institution: Academic years 2009–10, 2014–15, and 2019–20

The data in this figure is described in the surrounding text.

¹ Parent PLUS Loans are taken out by parents of dependent students and are used toward the students’ undergraduate education. Parent PLUS Loans were available through both the William D. Ford Federal Direct Loan Program and the Federal Family Education Loan Program (FFELP) until FFELP was discontinued in 2010. Since then, Parent PLUS Loans have been referred to as Direct PLUS Loans.
² Student financial aid includes any federal and private loans to students and federal, state/local, and institutional grants. For academic year 2009–10, the percentage of students with financial aid was reported as the percentage of students who “received aid.” Starting with academic year 2010–11, postsecondary institutions reported the same data as the percentage of students who “were awarded aid” to better reflect that some students were awarded aid but did not receive it.

SOURCE: National Center for Education Statistics. (2022). Sources of Financial Aid. Condition of Education. U.S. Department of Education, Institute of Education Sciences. Retrieved July 15, 2022, from https://nces.ed.gov/programs/coe/indicator/cuc.

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