College Grants on a Postcard: A Proposal for Simple and Predictable Federal Student Aid

Despite a range of federal programs designed to offset the cost of college, evidence shows that they have limited impact on the college attendance rate of even high-performing low- and middle-income students. The authors propose a drastic simplification of the current system of educational grants and tax incentives. Their proposal combines Pell Grants and the Hope and Lifetime Learning tax credits for undergraduates into a single, streamlined grant administered through the Department of Education, using information already collected by the Internal Revenue Service (IRS). Eligibility can be explained on a postcard, allowing students and families to anticipate their grants many years before the college decision. This set of reforms will improve the effectiveness of the billions already committed to higher education, allowing aid to serve its intended goal: opening college doors to those with the ability but not the means to pursue higher education.