New Papers on Effectiveness of Financial Aid

June 25, 2013

WASHINGTON — As Congress begins preparing to eventually reauthorize the Higher Education Act, many suggestions have already been put forward for reorganizing and rethinking financial aid programs to better meet the needs of current students. The American Enterprise Institute joined the fray on Monday with several research papers on rethinking grants, loans and the student aid system as a whole to focus on college affordability.

The papers, which centered around a theme of "The Trillion-Dollar Question: Reinventing Student Financial Aid for the 21st Century," focused on a range of subjects — from "promise programs" that aim to help students plan and prepare for college to alternative approaches to student loans and repayment — but aimed to increase institutional accountability, as well as effectiveness for students. They included a look at the historical context for federal financial aid programs as well as the return on investment for federal student aid, and generally emphasized the importance of a research- and evidence-based approach as Congress reevaluates financial aid programs.

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