America's higher education system is among the best in the world. Nevertheless, there is scope for improvement. In particular, there appear to be substantial financial barriers to higher education despite large government expenditures aimed at promoting access. Policy makers have proposed addressing these barriers by increasing student grants.…

Over the last century, Americans have formed a social contract with higher education through the development of and changes to student financial aid programs. These federal, state, and institutional programs are the manifestation of the value we place on who should and who does pay the costs of higher education. Grants versus loans and low-income…