Concerns about the rising cost of college and growing student loan debt have intensified in recent years, with 85% of non-enrolled adults citing affordability as a key barrier (Gallup & Lumina Foundation, 2024) and a third of currently enrolled college students agreeing that their "institution charges too much for an undergraduate…

This report examines state-funded loan forgiveness and conditional grant programs, designed to alleviate student loan debt and address workforce shortages in high-need fields. These service-contingent programs incentivize graduates to work in targeted occupations or underserved areas in exchange for debt relief.

Student loans can help fill cost gaps created by insufficient grants, scholarships, and family income in funding a postsecondary education. Whereas receipt of grant aid does not require repayment, student loans must be repaid with interest. Loans provide students with additional choices, such as living independently (instead of living with parents…

Grant aid -- whether based on financial need, merit, or a combination therein -- is the primary form of financial aid awarded by states. States use grant aid to encourage academic preparation, enhance access to postsecondary education, affect students' choice of college, support persistence, and reduce out-of-state migration. State grant aid…