College grants: 10 stingiest states for students

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(MoneyWatch) With prices at state universities continuing to spiral ever higher, affording college has become increasingly difficult for many families.

Some states, however, are making it even tougher for students to afford college by directing much of their state grant aid to more affluent students who don't need the financial help.

An important new report from the Brookings Institute pinpoints how all 50 states and the District of Columbia deploy their state grants to college students. Nationwide, states allocate 73% of their college grants to students who file for financial aid and require a helping hand.

Some states, however, are playing grinch with their college grants by allocating much of the money to students who don't require assistance. Some of these states are devoting the majority of awards to students based on "merit." A common way that states determine merit is to look at high school performance such as grades and test scores.

10 stingiest states for college students

What follows is a list of states, the majority of them in the South, that provide the smallest percentage of their college grants based on students' financial need:

In addition to these 10 states, in the District of Columbia only 6% of grants are linked to need.

A consequence of poor aid policies

Ironically some of the states with the poorest record of helping low and moderate-income students with college costs also have some of the lowest percentages of college graduates living within their borders. In West Virginia, for instance, only 17% of residents have earned a bachelor's degree, which is the lowest rate in the nation. Following close behind is Mississippi where just 19% of residents have a bachelor's degree.

Despite limited funds, some states admirably allocate all their grants to students who demonstrate financial need. In contrast to the states above, the following 14 states allocate 100% of their grants to low and moderate-income students who qualify for financial aid. Here is the list:

14 states that award all college grants based on need

Not surprisingly, the report urges states to use their limited state resources to help students who truly need the assistance and explore linking this help in ways that will encourage students to actually graduate. Sounds like a no brainer to me.

State government image courtesy of Flickr user Marxchivist.

[Meg003]

Georgia offers free tuition to every student. Why should that change?

[Tadbrowning]

This would be our family living 30 miles from the WV border:
Some states, however, are playing grinch with their college grants by allocating much of the money to students who don't require assistance. Some of these states are devoting the majority of awards to students based on "merit." A common way that states determine merit is to look at high school performance such as grades and test scores.
Yes, we are not considered "need based" according to the government standards. However, our college grad did have parents who struggled monthly with paying private school tuition from grade 1 through 12 to ensure our child got the best education available that our income could provide. Granted, we are considered, at best, middle income. We are not wealthy, and we are not poor. It it had not been for the Promise Scholarship, we could not afford to send our daughter to college. She's a studious child, loves to learn and is now attending professional school for a doctorate degree. Yes, we are proud of her. But again, don't discount the middle to low-middle class. While we are not poor, we still cannot continue to afford the expense of her education without some help or tax deduction from the government. While I have nothing against low income recipients receiving allowances, it shouldn't be a free ride for anyone, regardless of income. We are banking on our daughter to pay back her graduate her middle income parents will extend their retirement years to pay back the first four years of college. Keep the Promise Scholarship available for West Virginia students - they deserve the opportunity whether their parents are poor or rich.