Fast Facts: Financial Aid

Data Summary
85% of full-time, first-year undergraduate students were awarded some type of financial aid in 2022-2023.[1]
The majority of students awarded financial aid received federal grants.Note Reference [1]
The average federal grant award for undergraduate students has more than doubled to $10,146 in 2022-2023 from $4,335 in 2001.Note Reference [1], [2]
Student aid estimates for 2023-2024 show that average federal grant aid has increased to $11,610.[3]
In 2021-2022, the average grant and scholarship aid awarded was highest at private, nonprofit four-year institutions for students in households earning $30,001-$48,000 per year.[4]
47% of undergraduate students who were awarded aid received federal student loans during the 2022-2023 academic year.Note Reference [1]
In 2022, just over 455,000 students were awarded Federal Work-Study funds.[5]
Black undergraduate students, women, and dependent students were most likely to receive financial aid.[6]
The cost of a college education is more than most students can afford out of pocket. To help with those costs, the majority of students utilize financial aid.
In this report, we break down who can benefit from student aid, how financial aid offerings have fluctuated over time, and what types of aid are available to undergraduate and graduate students.
Types of Financial Aid
Students from all backgrounds and situations can access financial aid to help them pay for school. Below are the main types of aid available.
Scholarships
Need-based and merit-based scholarships are financial aid options awarded by the government, public organizations, private organizations, and individual academic institutions.
Scholarships do not need to be repaid and can be used to cover students’ tuition and fees, books, and other costs associated with attending school.[7]
Federal Grants
Federal grants are a form of financial aid provided by the federal government that typically do not need to be repaid. These grants can be used to pay for four-year colleges and universities, two-year institutions otherwise known as community colleges, or accredited career programs.[8]
According to the National Center of Education Statistics (NCES), during the 2021-2022 academic year:Note Reference [2]
- 56% of first-time, full-time undergraduate students who were awarded aid were awarded federal grants.
- The average federal grant aid awarded was $4,983.
Examples of federal grants include Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), Teacher Education Assistance for College and Higher Education (TEACH) Grants, and Iraq and Afghanistan Service Grants.
As of 2022-2023, undergraduate students who received Pell Grants accounted for 53% of students who were awarded grant aid during the year.1 The average Pell Grant aid awarded during that period was $5,240.Note Reference [1]
State, Local, and Institutional Grants
Grants are also awarded by state governments, local governments, and individual institutions. Just like federal grants, these grants typically do not need to be repaid.Note Reference [8]
- In 2021-2022, 33% of students awarded aid were offered state/local grants.Note Reference [2]
- During the same year, 54% of students awarded aid were offered institutional grants.Note Reference [2]
- The average amount of state/local grant aid awarded was $4,116.Note Reference [2]
- The average amount of institutional grant aid awarded was $12,500.Note Reference [2]
Federal Work-Study
Federal Work-Study (FWS) is a government program that allows college students to work part time, on or off campus, while enrolled in school. Through FWS, undergraduate or graduate students earn wages that they may use at their discretion. However, their wages will be capped at the amount of their FWS award.[9]
According to the most recent data from the U.S. Department of Education (ED):Note Reference [5]5
- During the 2024-2025 academic year, $1.2 billion in FWS funds was allocated to participating institutions.
- In 2024-2025, 2,951 institutions nationwide participated in the FWS program.
- In 2022, 455,015 students were awarded FWS funds.
- On average, students earned $2,083 in FWS funds that year.
Federal Student Loans
Unlike other forms of financial aid, federal student loans consist of borrowed money and must be repaid within a certain period, often with interest.[10]
During the 2022-2023 academic year:
- 47% of students awarded aid were awarded federal student loans.Note Reference [1]
- The average federal student loan amount awarded was $5,844.Note Reference [1]
Private Student Loans
Like federal student loans, private student loans must also be repaid with interest. They differ from federal student loans in that they often require a co-signer or established credit record and do not offer loan forgiveness plans.[11]
Financial Aid Demographics
As of the 2022-2023 academic year, 85% of full-time, first-year undergraduate students were awarded some type of financial aid.Note Reference [1] Among the students who were offered aid:
- 56% were awarded federal grants.
- 37% were awarded institutional grants.
- 47% were awarded federal student loans.
- 23% were awarded state/local grants.
During the same academic year, the average amount of grant and scholarship aid awarded to first-time, full-time students at four-year institutions was $15,750.Note Reference [4] However, financial aid awards differ across school types and demographics.
Financial Aid by Income Level
The average amount of financial aid students receive largely depends on their financial need compared to the cost of education.
- At two-year institutions, the average amount of grant and scholarship aid awarded to first-year undergraduate students in 2021-2022 was $6,560.
- The average aid awarded was highest during the same period at private, nonprofit four-year institutions for students whose families earned $30,001-$48,000.
- Average aid was lowest for students at two-year private, for-profit institutions whose families earned $110,001 or more.
 | Public Four-Year Institutions | Public Two-Year Institutions | Private Nonprofit Four-Year | Private Nonprofit Two-Year | Private For-Profit Four-Year | Private For-Profit Two-Year |
---|---|---|---|---|---|---|
$0 to $30,000 | $13,590 | $8,050 | $31,600 | $7,860 | $7,770 | $5,690 |
$30,001 to $48,000 | $13,290 | $7,470 | $35,610 | $10,520 | $8,630 | $5,250 |
$48,001 to $75,000 | $10,310 | $5,280 | $33,920 | $10,860 | $7,450 | $3,990 |
$75,001 to $110,000 | $6,090 | $2,830 | $29,830 | $11,250 | $6,050 | $1,580 |
$110,001 or more | $3,500 | $1,560 | $24,860 | $11,110 | $7,070 | $940 |
Financial Aid by Race/Ethnicity
The most recently available financial aid data from NCES reveals that during the 2019-2020 academic year:Note Reference [6]
- Black undergraduate students were most likely to receive any type of financial aid.
- Asian undergraduate students were least likely to receive any type of financial aid.
Financial Aid by Sex
During the 2019-2020 academic year, 74% of female undergraduate students received some type of financial aid, according to NCES. By comparison, 67% of male students and 66% of nonbinary students received financial aid during the same academic year.6
Financial Aid by Age
In 2019-2020, undergraduate students between the ages of 15 and 23 were most likely to receive some type of financial aid.Note Reference [6]
- Out of 10.5 million undergraduate students between 15 and 23 years old, 74% were awarded and received financial aid.
- 68% of undergraduate students between 24 and 29 received financial aid.
- 67% of undergraduate students aged 30 or older received financial aid.
Financial Aid by Dependency Status
While some college students receive financial assistance from family or other support systems, others arrive at school independently. During the 2019-2020 academic year, 9.6 million undergraduate students were dependent, while 7.3 million were independent, per NCES.Note Reference [6]
- 74.2% of dependent students received at least one type of financial aid during the year.
- During the same year, 67.8% of independent students received at least one type of financial aid.
Financial Aid Over Time
Total student aid has increased exponentially over the past 50 years. Between 1970 and 2023, total financial aid, including non-federal student loans, rose by more than 900%, according to College Board.Note Reference [3]
- Total aid peaked during the 2010-2011 academic year at $341.7 billion.
- After adjusting for inflation, student aid during the 2022-2023 academic year was $268.3 billion, the lowest it had been in 10 years.
The average amount of aid awarded to students has also increased over time. Between 2003 and 2023, the total average aid for undergraduate students rose by 25%, per College Board. For graduate students, average aid increased by about 20%.Note Reference [3]
- After adjusting for inflation, total average aid for undergraduates peaked in 2010-2011 at $18,934 per student.
- Total average aid for graduate students was also at its highest during that period at $34,977.
Average grant aid for undergraduate and graduate students has increased the most over the last 20 years.Note Reference [3]
- Between 2003 and 2023, the average undergraduate grant aid increased by roughly 79% from $6,490 to $11,607.
- During the same period, average grant aid for graduate students increased from $6,941 to $10,751.
Frequently Asked Questions About Financial Aid
Generally, any U.S. citizen or eligible noncitizen who is enrolled in a college or career degree or certificate program and has demonstrated financial need will qualify for student aid from the federal government.[12]
Students can obtain additional, non-federal financial aid through nonprofit organizations, private organizations, or their schools. Schools and organizations have their own set of eligibility requirements for financial aid.
It’s important to fill out the Free Application for Federal Student Aid (FAFSA) form even if you believe you will not qualify for financial aid due to family income because federal student aid does not have an income cut-off. Other factors may still make you eligible to receive aid.