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- Students at Utahs postsecondary institutions received $1.6B in federal aid for 2022-23.
- Aid included $1.1B in loans, $527M in Pell Grants, and $19M campus-based programs.
- Low FAFSA rates in Utah continue to lead to missed financial aid opportunities for students.
SALT LAKE CITY — Whether it's going toward research grants or financial aid to help students pay their tuition, higher education institutions are reliant on funding from the federal government.
In fact, a new report from the Kem C. Gardner Policy Institute revealed students at Utah's postsecondary institutions received about 350,000 federal student aid awards totaling $1.6 billion in the 2022-23 school year.
"Federal aid supports college access for thousands of Utah students, helping them gain skills and degrees that boost earnings and strengthen Utah's economy," Andrea Brandley, the Institute's senior education analyst, said in a statement. "That investment creates a multiplier effect that benefits individuals, families and communities statewide."
Broken down further, students received $1.1 billion in federal student loans, $527 million in Pell Grants and $19 million in campus-based federal aid programs, including Federal Supplemental Educational Opportunity Grants and the Federal Work-Study Program — which benefit undergraduate students with "exceptional" financial need and provide jobs for part-time students, respectively.
The report also showed that over 96,000 undergraduates at Utah institutions (26.1%) received Pell Grants for the 2022-23 school year at an average of nearly $5,000 per student, and about 86,000 undergraduates took out other federal loans with an average award of $6,000 each.
Additionally, over 300,000 Utahns currently hold student debt, totaling $10.9 billion, though Utah carries less student loan debt than most states.
Part of this could be attributed to Utah's low Free Application for Federal Student Aid rates. Data from June 2023 showed that only 35.5% of Utah high school seniors had completed the FAFSA — the second-lowest total in the nation, ahead of only Alaska, according to data from the National FAFSA Tracker.
These completion rates resulted in students missing out on financial assistance, with data from the National College Attainment Network showing that Utah high school seniors left over $42 million of Pell Grant money on the table in 2022.
Fast forward to 2025, and Utah's FAFSA completion rate remains virtually unchanged at 35.6%, again good for 49th in the nation.
Furthermore, the report shows that federal student aid participation varies across Utah colleges and universities. Among public degree-granting institutions, Pell Grant rates range from 16% to 26%, and loan rates from 6% to 22%. Technical colleges report low Pell use and no student loan participation.
On the other hand, private colleges enroll the largest share of aid recipients, with about a third of students receiving Pell Grants and nearly half of students taking out student loans. An exception to this is found at Brigham Young University, where only 12% of students borrow from the federal government.
Participation of students at Utah institutions in federal student aid also has an impact on the Beehive State's economy, according to the report. One study referenced in the report showed that an increase in Pell Grants by an amount equal to 1.0% of a city's income raises local income by 2.4% over the next two years.
"Aid spending circulates through Utah's economy as students use grant and loan dollars for tuition, housing, food, transportation and other expenses. This spending supports jobs, generates tax revenue and creates a ripple effect that benefits local businesses and communities particularly in college towns," reads the report.
It also contributes to workforce development, with degrees and certificates earned with the help of aid contributing to higher earnings, economic stability and life quality, the report says.
