Building Debt-Free College Pathways Through a Federal-State Funding Partnership: A Primer

Both the federal and state governments make large investments in higher education. State governments operate public colleges and universities, which collectively serve three-quarters of undergraduates, while the federal government provides financial aid directly to students through its voucher-like student aid programs, in addition to providing research funding and some other supports for colleges.   

However, there is no direct relationship between the federal government and state governments’ higher education investments. This lack of alignment impedes policymakers’ ability to lower college costs, reduce student reliance on debt, and improve institutional capacity to serve all students. 

Our new primer offers an overview of existing frameworks for federal-state partnerships, a formula for assessing the College Affordability Gap, and key considerations for designing a new partnership for debt-free college.