Dive Brief:
- A federal law that was intended to prevent states from reducing their spending on higher education didn’t stop states from reducing funding for student financial aid, according to a study.
- The American Recovery and Reinvestment Act of 2009, which provides matching federal funding to states, did accomplish its goal of having states maintain their general spending on higher ed.
- For federal matching programs, lawmakers should make sure that they don’t allow states to trade off one type of higher ed spending for another, says the study’s author, an assistant professor at the University of Illinois at Urbana-Champaign.
Dive Insight:
The college affordability study looked at trends in state spending on public four-year universities, tuition, and fees, as well as state-funded student financial aid. Generally, states have three avenues of spending for higher ed: funding for institutions, capital expenditures for institutions, and student financial aid. The study found that not only did state funding for student financial aid decrease under the 2009 law, but the states actually decreased that spending in response to the law. The study’s author, Jennifer Delaney, recommends that policymakers consider all aspects of college affordability — including appropriations, tuition, student aid, and family income — to better understand the issue.