Almost a year after assuming leadership, the administration of Barack Obama has taken on enormous tasks in confronting the recession that has gripped the U.S. economy. Americans have watched tentatively as the president has extended federal powers into handling corporate bailouts, overseeing the rehabilitation of banks and General Motors, laying…

A growing body of empirical evidence shows that some financial aid programs increase college enrollment. Puzzlingly, there is little compelling evidence that Pell Grants and Stafford Loans, the primary federal student aid programs, are effective in achieving this goal. In this paper, we provide an in-depth review of this evidence, which taken as a…