Several wealthy colleges and universities have recently begun removing all loans from low-income students' financial aid packages. This article reports on a study that found that the introduction of "no-loan" policies has positively impacted low-income enrollments, suggesting that this aid strategy may be an effective, though limited,…

Reviews recent empirical evidence on the impact of price changes on individual demand for higher education. The evidence suggests that both low tuition and student grants do stimulate increases in enrollment. However, the student aid induced enrollment response is relatively low and the cost peradditional student may be very high. (Editor/JT)