Federal student assistance has become a tangled thicket of programs and policies. It is complicated, fails to focus benefits on the neediest students, and is increasingly expensive. Complexity and cost, grants or loans, who should benefit from student assistance and who should pay, and reshaping student aid are discussed. (MLW)

The recent history of trends affecting the affordability of college are summarized. A better balance needs to be established between loan and grant support for students. The Stafford Student Loan Program (formerly the Guaranteed Student Loan Program) and the Reishauer HELP program are discussed. (MLW)

There is an implicit general plan currently uniting federal and state financing policies, however, it is inefficient, inequitable, and ineffective, involving obsolete state financing policies and mistaken federal responses. Implementation of another plan available would require federal intervention in state financing policies. (MLW)