This report presents study results concerning student financial aid and the payback periods for state grants, federal grants, and federal loans to the State of Arkansas and to the Federal Government. The study reveals that student aid for postsecondary education in Arkansas has significant, positive effects on the state's tax revenue and on the Federal Government's individual income tax revenue. The results of the study also indicated a considerable difference in personal incomes between individuals who complete only high school and individuals with different levels of postsecondary education. It is noted that when long-term ramifications of a higher education are considered, the payback periods for selected student financial aid instruments are notably short. Available evidence indicates that student financial aid in Arkansas assists in the achievement of a higher education and thus increases taxable income, which in turn more than compensates for the amounts expended for student financial aid. It is further noted that the higher taxable revenue, as well as the higher quality of life achieved as a result of the advanced education, continues long after the loan is repaid. Contains an 18-item bibliography and 45 references. (GLR)