The National Association of Student Financial Aid Administrators published its 2025 National Student Aid Profile on Sept. 8, a one-stop guide that explains federal grants, work-study, and student loans — and how those dollars have changed over time, NASFAA states.
The report’s central message is straightforward: while Congress has raised the statutory maximum Pell Grant by more than $1,600 over the past decade, its inflation-adjusted value has been largely flat and has not kept pace with the cost of living, NASFAA said. The maximum award is $7,395 for both 2024-25 and 2025-26. Pell Grants in 2023-24 assisted about 6.5 million students, with an average award of $4,818 and just over 75% of recipients from families with incomes under $40,000, the profile says. Total federal Pell volume was $31.5 billion, the report says.
Campus-based aid has continued to be steady in funding amidst continued high student need. NASFAA report shows that the Federal Supplemental Educational Opportunity Grant helped about 1.4 million students in 2022-23, with an average award of $801 and a federal volume of $1.1 billion. Slightly over 64% of FSEOG recipients who were dependent students came from families with incomes less than $30,000. Federal Work-Study provided jobs for about 419,932 students in 2022-23, with an average award of $2,267 and a federal volume of $952 million. Among Work-Study dependent undergraduates, approximately 42% were from families with incomes below $42,000.
Loan data contradict the notion that borrowing is out of control. In inflation-adjusted terms, total volume in subsidized and unsubsidized Direct Loans has declined precipitously over the past decade, while PLUS Loan volume has remained relatively flat, NASFAA stated. For 2023-24:
- Pell Grant: ~6.5 million recipients; average award $4,818; total volume $31.5B. Just over 75% of recipients had family incomes <$40,000.
- FSEOG: ~1.4 million recipients; average award $801; federal volume $1.1B. Just over 64% of dependent recipients from families <$30,000.
- Federal Work-Study: ~419,932 recipients; average award $2,267; federal volume $952M. About 42% of dependent undergrads from families <$42,000.
- Direct Subsidized Loans: ~4.2 million borrowers; average loan $3,759; total volume $15.7B.
- Direct Unsubsidized Loans: ~5.6 million borrowers; average loan $4,136 (undergrad) / $19,313 (graduate); total volume $43.8B.
- Direct PLUS Loans (combined): parents ~612,814 borrowers (avg $19,733); graduate/professional ~444,452 borrowers (avg $31,719); total volume $26.2B.
Upcoming policy changes will revolutionize how graduate students pay for school. As of next year, the Grad PLUS program will no longer be an option for graduate and professional students, closing off financing avenues for that group, NASFAA reports. Most Grad PLUS borrowers come from low-income families, with 52% coming from families that earn less than $40,000 per year, the profile continues.
“Federal student aid programs are a lifeline to millions of students for whom college might otherwise be unaffordable. But every year that Congress fails to increase funding for these vital programs, students and families must shoulder a heavier financial load,” NASFAA President and CEO Melanie Storey said. “As the cost of living continues to rise, flat funding is a cut to students and families.”. It’s time now to reinvest in these programs so that higher education remains within reach of all, not just the wealthy who can afford it.”
Along with topline figures, the profile includes each program’s purpose, number of recipients, average awards, total volume, and breakdown by family income — data that lawmakers, congressional staff, and campus leaders use to estimate the impact of federal aid, NASFAA says.
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