Investment in grant aid allows qualified students to pursue their higher education goals without excessive debt. Students are increasingly forced to finance their education through loans rather than grants or work-study. Loans accounted for just 20 percent of federal assistance in 1976, but in 2009-10, loans made up about two-thirds of all federal aid. During this same time, funding for federal grant programs has failed to keep pace with inflation

Student financial aid programs account for about 1 percent of the federal budget. The federal appropriation for Pell and campus-based student aid programs in 2009-10 was $30.9 billion, which helped almost 8 million students continue their education. Much of this funding goes to undergraduate students from low-income families.

Three studies by the U.S. Department of Education have all reached the same conclusion: No. On the contrary, cuts in student aid lead to tuition increases. At state institutions, tuition has increased rapidly when states cut appropriations for higher education. Colleges and universities have raised their financial aid budgets significantly to make up for the loss in the value of federal grant and work-study programs.