Even without a state financial aid program, students at the three state universities last year received $125 million more in financial aid than students received five years ago, according to the Arizona Board of Regents' student financial aid report.

The universities provided $690 million in financial aid during the 2002-2003 school year, said Dan Anderson, the regents' assistant executive director for institutional analysis, at the board of regents meeting at Arizona State University Friday.

This increase preceded last year's policy changes that mandated the universities set aside even more money for financial aid.

Last year, the regents changed the portion of tuition that had to be spent on financial aid from 8 percent to 14 percent.

President Peter Likins set aside 40 percent of last year's hike for financial aid.

According to the report, the number of undergraduate students who graduate with debt is 45 percent, a number that some found low, and others were concerned about.

Regent Gary Stuart was interested in this number because it was lower now than in past years.

"With respect to the undergraduate debt, we've had a decline," Stuart said. "Are we likely to see a

John Nametz, director of financial aid at the UA, said the decrease might not be a steady figure.

"This year, we're seeing an uptick (in debt). Undergraduates have been bumping into the loan limits," Nametz said.

President Peter Likins said he thought it was good that 78,000 students received financial aid, because those who needed money were able to get it.

"We did what we said we would do," he said, referring to the protection of all Pell grant recipients as well as other students and their families.

Nametz said this could be accomplished again.

"We have enough to do this for next year as well," he said, assuming the tuition increase is in the $400 to $500 range.

But regents and university presidents stressed that it is not enough for the universities to set aside money for financial aid.

ASU President Michael Crow said education is an investment for both students and the state, but the state is not making that investment right now.

"This is one of the most positive substantial investments an individual can make over a lifetime. We have to help these students make investments, (but) the state is not making an investment," Crow said. "Investments are not being made by the state, investments are not being made by corporations, investments are not being made by foundations."

NAU President John Haeger said he was keeping in mind the students caught in the middle of the financial aid trap.

"Those who are being caught are what we would call middle class," Haeger said. "They are not on either end; they don't qualify for aid and they can't afford (college)."

His statement echoed a comment made during the call to the audience Thursday afternoon.

Colby Ashton, an ASU alumnus who was protesting further tuition increases, said he worked fulltime and lived in a two-bedroom apartment with four other people just to afford college.

He said he was stuck in the realm of "those too poor to afford college and those too rich to qualify for aid."

Ashton said the regents should be mindful of students in that situation when considering another tuition increase this spring. He said these people are the "middle group being squeezed out."

"These are the students the universities cannot afford to lose," Ashton said.

÷ Jeff Sklar contributed to this report