A Century Foundation analysis found that state and institutional grant aid frequently benefits higher‑income students, with top‑quartile families substantially more likely to receive grants that exceed documented financial need. The report estimates at least $10 billion annually in state and institutional aid goes beyond students’ measured need, skewing benefits toward wealthier and more selective college attendees. At the same time, College Board data show net tuition rose slightly for 2025–26 but remains well below historical peaks after inflation and increased grant aid. The divergence between rising institutional aid and inequitable distribution highlights structural problems in how public resources and campus dollars are allocated. Policymakers and campus financial‑aid offices should consider tighter targeting of grants, greater transparency in award formulas, and recalibrating merit versus need‑based aid to channel public and institutional funds toward students with the greatest financial vulnerability.