March 2026: New NACAC & ASA Report
ASA partnered on a new report for NACAC, along with financial aid expert Don Heller, entitled The Shifting Role of Institutional Aid – What about Need? We are particularly excited about this report since it shines a light on how institutions can increase access for low-income, underserved students.
The report is based on a blog ASA partner Abby Miller co-authored when the NPSAS:20 provisional data were released, which found that institutions seemed to award more aid to higher income students than to students who need aid the most. Of course, the story is not that simple – institutions are using aid as an enrollment management tool and higher income students tend to enroll in more selective, well-resourced institutions.
Still, it is noteworthy that:
- Merit-based grant awards are largest for the highest income students at both public and private four-year institutions.
- Higher income students receive need-based aid.
- White students are more likely than any other groups to receive merit-based grants in both sectors, and Black and Latino students are the least likely to receive merit-based grants at public institutions.
- Over the last 20 years, aid receipt increased the most for merit-based aid. The greatest increase in median awards was seen for merit-based aid at private institutions
- Students from the highest income quartile have little to no unmet need, while those in the lowest quartile have the highest remaining need (Over $10-15,000 depending on sector).
- Even after loans, work earnings, family contributions, and grants are taken into account, low-income students at private four-year institutions still fall short of paying for college and associated expenses. It is unclear how they pay the balance.
We recognize that institutions are facing mounting pressures and difficult, complex situations in today’s environment, but recommend that leaders come together to examine their own data and discuss how to better support low-income, underserved students. Doing so will only help increase public confidence in higher education as an engine for access and social mobility.
