First published in NH Business Review, July 2, 2025

New Hampshire remains one of the lowest funders of public higher education in the country, according to 2024 data from the State Higher Education Executive Officers Association (SHEEOA). State funding can help offset costs associated with public higher education opportunities for residents, and is one strategy states can employ to recruit and retain young people, an important goal for New Hampshire as the second-oldest state by median age.

According to the 2024 SHEEOA report, New Hampshire had the lowest public higher education appropriation per full-time student in the country at $4,629. The U.S. average was $11,683. The Granite State’s per capita spending on public higher education also ranked the lowest in the country, at $125 per resident compared to the national average of $378. Recent cuts to the University System of New Hampshire’s budget are likely to continue the Granite State’s status as one of the lowest funders of public higher education for the near future.

This relative lack of investment may already be having a significant impact.

First, high tuition costs and few opportunities for assistance may deter potential students, particularly those from families with low incomes, from pursuing higher education. College enrollment dropped slightly in New Hampshire between 2023 and 2024, by 0.4%. Despite anticipated decreases in enrollments due to fewer people of traditional college age, only five other U.S. states experienced enrollment declines, while the remaining states saw increases.

Second, for students attending college in New Hampshire, higher tuition rates may result in increased student loan debt for those who need to borrow to attend college. The Institute for College Access and Success found that graduates from New Hampshire’s colleges and universities who have student loans carry the highest average debt ($39,950) compared to all other graduates in the country. Additionally, New Hampshire has the second-highest percentage of graduates (70%) with student debt. Paying off student loans may prevent graduates from saving for retirement, purchasing a home, or engaging in other wealth-building opportunities that help ensure household economic stability and upward mobility for future Granite Staters.

Finally, low state funding for higher education can have long-term implications for the state’s workforce, including hindering the recruitment and retention of young people.

Making postsecondary education more affordable isn’t just about individual opportunity; it’s an important investment in New Hampshire’s future workforce and long-term economic growth. Without additional funding, the state risks falling further behind in attracting and retaining young talent needed to sustain its economy.

Nicole Heller is a senior policy analyst with the NH Fiscal Policy Institute. The NHFPI Policy Memo is a partnership of the NH Fiscal Policy Institute and NH Business Review.