Recent findings from the State Higher Education Executive Officers Association indicate notable changes in the funding framework for higher education in the United States. An analysis reveals that the gap between state and student contributions towards college costs has narrowed from 2008 to 2022.
Funding Contributions Overview
The report highlights that, in 2022, the proportion of higher education funding provided by students reached its lowest level in over a decade, accounting for 37.6% of total funding. Despite this decline, the student share remains higher than the figures recorded at the beginning of the Great Recession.
Conversely, state funding for higher education has seen a marginal increase in recent years, representing 39.6% of overall funding in 2022. This figure, however, remains substantially lower than the peak of 49.2% noted in 2008.
Growth of Grant Funding
The study points to a consistent rise in funding derived from grants, including Pell Grants and various tuition discounts. By 2022, grants contributed to 15.7% of funding, a significant rise from the 9.4% reported in 2008.
Students’ financial contributions towards education have also increased since 2008, with a particularly pronounced peak occurring between 2013 and 2020, when their share reached 41.8%. Despite a decline in the percentage since that peak, the 2022 figure still exceeds the 2008 rate by 2.7 percentage points.
Regional Discrepancies in State Funding
Regional discrepancies in state funding have been observed across the nation. In Alaska, state funding constituted as much as 67% of total higher education costs in 2022, while states such as Indiana, Arizona, and West Virginia reported state contributions of less than one-third.
2023 Funding Pursuits
A prior SHEEO study noted that for 2023, state funding levels represented only the second time since the Great Recession that appropriations per full-time student surpassed pre-recession amounts. Additionally, local funding for community colleges has experienced a modest increase to 7.1% in 2022 compared to previous years.
Challenges with Federal Grants
While the share of federal grants has increased nationally since 2008, specific programs, such as Pell Grants, have demonstrated a decline in individual shares since 2011, highlighting ongoing challenges in addressing rising education costs.
Conclusion
This analysis reflects a complex evolution in the funding dynamics of higher education, indicating that while the financial burden on students has increased, state contributions continue to play a significant role in the overall funding landscape across various states.
(Source: Higher Ed Dive)