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Increase State Financial Aid and Target Students in Need About 74 percent of the $14.1 billion in grant aid that states awarded for the 2019 academic year was need-based (a slight decrease from the previous year), meaning it went to low-income students who struggle the most to pay for college. The other 26 percent was merit-based, meaning it was awarded to students who meet certain criteria typically measured by high school GPA or college entry exam scores regardless of household income. Need-based aid is intended to expand access to higher education for low-income students. Financial aid is critical for their access to higher education and graduation. One careful study found that a $1,000 increase in grant aid reduces the likelihood that a student will drop out of college by 9.2 percentage points. ....