2025 State Legislative Priorities: FAFSA Completion and State Financial Aid
By: Rachel Burns, SHEEO Senior Policy Analyst
As states gear up for the 2025 legislative session, issues related to the Free Application for Federal Student Aid (FAFSA) completion and financial aid remain top of mind for many state higher education agencies. During regular check-in meetings with members of the Financial Aid Learning Community, SHEEO staff inquired about the legislative priorities of some learning community participants. Shared priorities across states included continued funding for state financial aid programs, expansion of aid eligibility, and promoting FAFSA completion.
Illinois: State law requires seniors at public Illinois high schools to complete the FAFSA (or an opt-out form) as a graduation requirement. In support of high school counselors, one legislative priority for the Illinois Student Assistance Commission (ISAC) is to ensure that information about and assistance with FAFSA completion is incorporated into the school day. ISAC also prioritizes identifying individuals at each high school who serve as the contact point for FAFSA completion.
Washington: Washington state is currently facing a $10–12 billion budget shortfall over the next four years. In order to avoid cuts to state financial aid programs, legislative priorities of the Washington Student Achievement Council include permanently maintaining current income eligibility and award levels for the Washington College Grant, and fully funding their Passport to Careers program, which provides scholarships and support services to former foster youth and unaccompanied homeless youth.
Minnesota: Due in part to the rollout of the Minnesota North Star Promise in 2024 — a free tuition program for income-eligible students attending the colleges and universities of the Minnesota State system, all University of Minnesota campuses, and all Tribal colleges — Minnesota has seen a significant increase in fall 2024 enrollment. In order to support the increased enrollment, legislative priorities of the Minnesota Office of Higher Education include financial aid stabilization to meet continued demand for programs like North Star Promise and the State Grant as well as other initiatives designed to help the state meet its ambitious attainment goals.
Oklahoma: The Oklahoma State Regents for Higher Education (OSRHE) and the Oklahoma College Assistance Program (OCAP) are jointly invested in maintaining and expanding access to financial aid programs for Oklahoma students. Legislative priorities include expanding application opportunities for the Oklahoma Promise and aligning legislative language with the financial data available as a result of FAFSA Simplification. OSRHE and OCAP are also monitoring possible additional changes to high school graduation requirements and their potential impacts on state financial aid program eligibility.
Michigan: The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) is unique among state higher education agencies in that it received significant legislative funding for marketing and outreach to promote college going and state financial aid programs. Legislative priorities include demonstrating the impact this investment has on participation in state scholarships and grants and maintaining this funding. Michigan is also focused on expanding access to tuition-free community college and lowering costs for more students through the continued investment in the Michigan Achievement Scholarship, Michigan Reconnect, and MI Future Educator programs.
South Carolina: The South Carolina Higher Education Tuition Grants Commission and the South Carolina Commission on Higher Education are monitoring legislation to expand funding for South Carolina financial aid programs. Pre-filed bills for the 2025 legislative session include the expansion of funds for South Carolina financial aid programs. Specific pre-filed bills include (1) addressing the state’s teaching profession by offering supplemental scholarships for education majors, which would help address teacher shortages and encourage more individuals to pursue a career in education; (2) extending merit-based state scholarships to graduate students who meet eligibility criteria; (3) increasing state scholarships to better align with inflation rates, ensuring that financial aid keeps pace with the rising cost of education; (4) revising residency requirements to allow students enrolled in South Carolina high schools, regardless of their official residency status, to qualify for state financial aid programs; and (5) removing drug and alcohol misdemeanors from the state’s scholarship certification/affidavit, potentially expanding access to scholarships for individuals with past offenses that would not otherwise disqualify them under the current law.
Ohio: The Ohio Department of Higher Education (ODHE) is focused on sustaining key student financial aid investments achieved in the most recent state operating budget. Programs including the Governor’s Merit Scholarship ($5,000 per year for the top 5% of high school graduates), the Ohio College Opportunity Grant (the state’s primary need-based aid program), and the Ohio Work Ready Grant Program (need-based aid for students at community colleges, university regional campuses and adult workforce education centers) are among the agency’s highest priorities. Adult learners are another focus for ODHE, along with statewide FAFSA completion efforts pursued in collaboration with the state’s Department of Education and Workforce.
Pennsylvania: The Commonwealth of Pennsylvania is currently undertaking the creation of a new State Board of Higher Education, with priorities focused on addressing college affordability. While the Pennsylvania Higher Education Assistance Agency (PHEAA) does not advocate for specific legislation, PHEAA’s Board has requested strong funding for higher education in the coming academic year. Additionally, PHEAA is preparing the implementation of a newly created Grow PA Program, that will provide grants beginning in 2025–26 to Pennsylvania students who pursue Pennsylvania degrees in high-demand industries and agree to live and work in that industry in Pennsylvania after graduation.
Other members of the FAFSA Learning Community indicated that they did not currently have any legislative priorities for the 2025 legislative session, but that they are actively tracking all higher education and financial aid-related bills.
