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Direct linkReyes, Jessica Wolpaw – Education Economics, 2008
The college financial aid system imposes an implicit asset tax that is prevalent and substantial. Facing this tax, rational families should reduce their total assets and shelter assets in protected categories. I find that the tax induces a 7-12% reduction in total assets, a result in line with the literature. Furthermore, I find evidence that…
Descriptors: Student Financial Aid, Economics, Need Analysis (Student Financial Aid), Paying for College
