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Student Aid Simplification: Looking Back And Looking Ahead

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  • Dynarski, Susan
  • Wiederspan, Mark
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    Abstract

    Each year, 14 million households seeking federal aid for college complete a detailed questionnaire about their finances, the Free Application for Federal Student Aid (FAFSA). With 116 questions, the FAFSA is almost as long as IRS Form 1040 and substantially longer than Forms 1040EZ and 1040A. Aid for college is intended to increase college attendance by reducing its price and loosening liquidity constraints. Economic theory, empirical evidence, and common sense suggest that complexity in applying for aid could undermine its ability to affect schooling decisions. In 2006, Dynarski and Scott-Clayton published in this journal an analysis of complexity in the aid system that generated considerable discussion in academic and policy circles. Over the next few years, complexity in the aid system drew the attention of the media, advocacy groups, presidential candidates, the National Economic Council, and the Council of Economic Advisers. A flurry of legislative and agency activity followed. In this article, we provide a five-year retrospective of what has changed in the aid application process, what has not, and the possibilities for future reform.

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    Bibliographic Info

    Article provided by National Tax Association in its journal National Tax Journal.

    Volume (Year): 65 (2012)
    Issue (Month): 1 (March)
    Pages: 211-34

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    Handle: RePEc:ntj:journl:v:65:y:2012:i:1:p:211-34

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    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Susan Dynarski & Joshua M. Hyman & Diane Whitmore Schanzenbach, 2011. "Experimental Evidence on the Effect of Childhood Investments on Postsecondary Attainment and Degree Completion," NBER Working Papers 17533, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Gabrielle Fack & Julien Grenet, 2013. "Improving college access and success for low-income students: Evidence from a large need-based grant program," Economics Working Papers 1393, Department of Economics and Business, Universitat Pompeu Fabra.
    2. repec:hal:wpaper:halshs-00870546 is not listed on IDEAS
    3. Gabrielle Fack & Julien Grenet, 2013. "Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program," PSE Working Papers halshs-00870546, HAL.

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