Variations in state higher education grant programs: Potential reforms from a case study

As higher education costs continue to rise across the nation, students are increasingly needing financial assistance. State grant aid programs play a vital role for millions of students across the nation when paying for their postsecondary education. This case study looks specifically at Iowa’s, Nebraska’s, and Wisconsin’s state funded grant aid models to understand how Iowa could restructure their current grant aid program to better serve both the students and taxpayers of the state. Specifically, for Iowa’s grant aid programs, four changes are recommended. All higher education sectors should be eligible for the state’s primary grant aid program. At minimum, funding for state grant aid should keep pace with inflation and student enrollment. An inclusive funding formula should be used to determine state grant aid award amounts. The state’s grant aid program should be reported on annually. Reports should cover both fiscal and student performance metrics