Chapter

Financial Aid Policy

Robert B. Archibald and David H. Feldman

in Why Does College Cost So Much?

Published in print October 2010 | ISBN: 9780199744503
Published online January 2011 | e-ISBN: 9780199866168 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199744503.003.0014
Financial Aid Policy

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Despite ample evidence that changes in net tuition do affect the college going decisions of students, there is scant evidence that increases in federal need-based financial aid actually have increased the college going rates of low-income students. This failure stems from the complexity of the system that determines eligibility for federal financial aid. Many have suggested simplifications of the system to make it more transparent. To stimulate discussion, this chapter suggests a more radical proposal, making federal financial aid an entitlement independent of income. This proposal is appealing because the most successful financial aid programs have been those with the simplest eligibility requirements. The chapter then compares and contrasts a dramatic simplification with the less radical proposals put forward by the Rethinking Student Aid Study Group and the National Association of Student Financial Aid Administrators. The chapter also discusses changes in federal student loan programs.

Keywords: federal financial aid; low-income students; National Association of Student Financial Aid Administrators; need-based aid; net tuition; Rethinking Student Aid Study Group

Chapter.  8986 words. 

Subjects: Financial Markets

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