This review explores the expanding role of federal aid policy considered from a contemporary and social justice perspective. It highlights recent trends in aid policy as well as difficulties that arise from the current system. Next, the review takes up an analysis of current aid policy that carefully considers equity and efficiency as primary criteria for funding public higher education. Through a meticulous review of the most up-to-date literature and data it then moves on to new proposals to increase equity, efficiency, and effectiveness with an eye toward increasing access and attainment. Indeed, a general takeaway from this review is that the federal role in financing 21st Century higher education is unlikely to diminish. Finally, research clearly points to what works, an important question however, is whether policy can be made to align with what is known about lowering financial barriers for underserved groups, particularly under the new Trump Administration.