The annual report gives background on the basics of the federal student financial aid programs, as well as shifts in recipients, funding levels, and award volume over time.

FOR IMMEDIATE RELEASE
Contact: Allie Arcese
Sr. Director, Strategic Communications
[email protected]

WASHINGTON, D.C., SEPTEMBER 8, 2025 — As students face uncertainty in paying for college, with several monumental policy changes on the horizon, an updated resource from the National Association of Student Financial Aid Administrators (NASFAA) offers practical insight into the background and impact of federal student aid program funding.

The annual National Student Aid Profile provides a comprehensive summary of these programs that help millions of students pursue their postsecondary ambitions each year. Data in the Profile range from the student aid funding patterns over time to the yearly reach of individual programs. Journalists, lawmakers, and congressional staffers often depend on the Profile as a ready resource.

Among its insights, the 2025 Profile shows that, over the last decade, although the maximum Pell Grant award has increased by more than $1,600, when adjusted for inflation, the maximum award for a full-time student has remained relatively flat, failing to keep pace with increases in the cost of living.

In recent years, there have been attempts to eliminate the Federal Work-Study (FWS) and Federal Supplemental Educational Opportunity Grant (FSEOG) programs, although the latest Profile shows that funding for these programs has been largely unchanged over the last several years, despite substantial need. About 39% of dependent undergraduate FWS recipients registered a family income of less than $42,000, while slightly more than 62% of dependent FSEOG recipients had a family income of less than $30,000. 

The Profile also gives a glimpse into student loan borrowing trends over the last decade. Despite the popular narrative that student borrowing is out of control, the overall loan volume for subsidized and unsubsidized Direct Loans has declined sharply in the last 10 years, when adjusted for inflation. Meanwhile, PLUS Loan volume has remained relatively flat over time. But starting next year, graduate and professional students will have fewer options to finance their education with the elimination of the Grad PLUS Loan program. The Profile shows that the majority of graduate and professional students who take out a PLUS loan have considerable need, with 52% coming from families making less than $40,000 per year.

“Federal financial aid programs are a lifeline for millions of students for whom a college education might otherwise be out of reach. But each year that Congress fails to increase funding for these critical programs, students and families shoulder a heavier financial burden,” said NASFAA President & CEO Melanie Storey. “As the cost of living continues to rise, flat funding amounts to a cut for students and families. Now is the time to reinvest in these programs to ensure higher education remains within reach for all, not just those who can afford it.” 

For each program, the profile features up-to-date data and information on the following:

• Number of recipients

• Total volume of awards

• Federal funding levels

• Distribution by family income

To set up an interview with a NASFAA spokesperson to discuss the Title IV programs, budget, appropriations, or anything contained in the National Student Aid Profile: Overview of 2025 Federal Programs, please email [email protected].

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About NASFAA

The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.