The Policy Implications of Interactions Among Financial Aid Programs

Various gift-aid, loan, and work-study programs help college students fill the gap between educational costs and their financial resources. Previous research generally has examined the effects of a given program by itself. What is missing are studies that investigate interactions among programs, such as how state or university grants reinforce or offset the targeting policies that are embedded in the Pell program. This article draws on research conducted on colleges in Indiana to describe how federal, state, private, and college-based financial aid programs and practices interact with each other to determine the total amount of gift-aid a student receives. It discusses how these relationships can dilute or enhance a program\u27s implicit targeting policies. The lessons learned from this experience provide important insights for developing a fuller appreciation of how current and future gift-aid programs may affect each other