Grant aid reduces the financial burden of human capital investment in postsecondary education. Theory suggests grant aid should substitute for other financial resources such as borrowing and labor market participation. Although studies have individually examined the impact of grant aid on hours of paid work and on borrowing for education, students…

The Free Application for Federal Student Aid (FAFSA) is an important tool to help students find financial assistance. Not only do students fill out the FAFSA to apply for federal aid for post-secondary education, but also to be considered for aid by states, institutions, and private funders. Thus, filling out the FAFSA, specifically, and applying…

The designation "low income" is often assigned to students who are Federal Pell Grant eligible; however, family incomes for these recipients range from $0 to as high as $60,000 (Baum & Payea, 2011). Over 93% of all zero expected family contribution (EFC) students have a family income of $30,000 or less and constituted 67.4% of all…

The Federal Pell Grant Program, which provides need-based grants to millions of college students, is the federal government's largest education expenditure. It consumes over half the Department of Education's annual budget and in 2010-2011 cost taxpayers about $36 billion per year. Although the program started out as a way to provide college…

Trend data on federal financial aid to students attending private colleges and universities are reviewed, based on a 1981-1982 survey of student aid records from a national sample of aid recipients attending 122 independent schools with enrollments of more than 500 students. Findings include the following: of the approximately 1.8 million…

This Congressionally requested memorandum compares the Pell Grant provisions contained in the recent new versions proposed by the Senate and House with the current program. The first section describes the program, pointing out that students' eligibility for Pell Grants and the size of their awards depend on three factors: the amount they and their…