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Ideas for Federal Policy to Encourage Socioeconomic Diversity

March 15, 2021

Ithaka S+R has released a report with four ideas about how the federal government could encourage colleges to become more socioeconomically diverse. The first idea is setting at 15 percent the share of students who are eligible for Pell Grants at a college (currently some colleges are well over that, but many are not). The second idea relates the first: to offer a tax credit on the endowment tax some colleges must pay if they exceed the minimum level. The third idea is to "expand the existing need-blind antitrust exemption to permit a broader set of institutions to coordinate on financial aid and admissions." And the fourth is better data collection by the government on the admission of and financial aid awarded to low-income students.

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