Subsidies to higher education in the United States have long been guided by the belief that policy should encourage college attendance. In principle, if not always in practice, policy has for some time sought to accomplish this by addressing college affordability. General subsidies that keep tuition at public institutions low are coupled with targeted grants and loans to citizens with greater financial need. Recent changes in higher education policy suggest that this model of public subsidies is under intense pressure. First, state budget shortfalls have resulted in rapid tuition inflation over the last two decades, making public institutions much less affordable than they once were. Second, state governments are increasingly devoting funds to merit-based rather than need-based scholarships. Third, the federal government has dramatically expanded its commitment to higher education through tax breaks targeting wealthier college-goers.