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Higher education delivers earnings gains for students and broader societal benefits such as higher tax receipts and less reliance on assistance, yet no consensus exists on whether current aid provides too much or too little support. The report analyzes barriers, system impacts, and potential approaches to adjust federal student aid.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/federal-aid-for-postsecondary-students/583474/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/federal-aid-for-postsecondary-students/583474.png","ImageObject",300,407,{"name":92,"@type":93},"Jacob","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-29","2026-10-15",true,{"@type":102,"interactionType":103,"userInteractionCount":19},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"How does the federal government support postsecondary students?","Question",{"text":112,"@type":113},"Through federal student loan programs, need-based grants such as the Federal Pell Grant, and tax preferences like the American Opportunity Tax Credit.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Why does the report say some students may not pursue higher education?",{"text":117,"@type":113},"It highlights barriers such as limited access to financing, the uncertainty of returns, and the fact that some benefits do not directly accrue to students.",{"name":119,"@type":110,"acceptedAnswer":120},"What approaches to changing federal aid does the report consider?",{"text":121,"@type":113},"It discusses options including changing how much financing is available, changing students’ financial uncertainty, and changing subsidies.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},583474,1792210437,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":19,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":139,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},962084931830,"https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd","|  | Federal Aid for Postsecondary Students |  |\n| --- | --- | --- |\n|  |  |  |\n\nJune 2018  \n© [Nirat.pix/Shutterstock.com](Nirat.pix/Shutterstock.com)  \nnotes  \nNumbers in the text, tables, and figures may not add up to totals because of rounding.  \nUnless otherwise specified, all years referred to in this report are federal fiscal years, which run from October 1 to September 30 and are designated by the calendar year in which they end.  \nUnless otherwise specified, all spending amounts are reported in nominal (current year) dollars.  \nIn this report,“higher education” and “postsecondary education” are used interchangeably and refer to instructional programs primarily for students who have completed highschool or the equivalent. They include academic, vocational, and continuing professional education programs.  \n [www.cbo.gov/publication/53736](www.cbo.gov/publication/53736)  \nContents  \nSummary 1  \nWhy Does the Federal Government Offer Student Aid? 1  \nWhat Aid Does the Government Offer and What Is Its Impact? 1  \nWhat Are Some Approaches to Changing Student Aid? 2  \nThe Motivations for Federal Student Aid 2  \nPrivate Financing Is Limited 2  \nThe Returns on an Education Are Uncertain 3  \nSubsidies for Education Can Benefit Society Beyond Their Effects on Students 5  \nFederal Student Aid and Its effects 6  \nBOX 1. TYPES OF FEDERAL STUDENT AID 8  \nLoans 10  \nBOX 2. CHANGES IN ENROLLMENT AND COMPLETION RATES 11  \nGrants 13  \nTax Preferences 14  \nApproaches to Changing Federal Aid for Postsecondary Students 15  \nBOX 3. APPROACHES TO SIMPLIFYING FEDERAL AID FOR STUDENTS 16  \nChange How Much Financing Is Available 18  \nChange Students’ Financial Uncertainty 20  \nChange Subsidies 23  \nAbout This Document 25  \nTables  \n1. Educational Status of 2004 High School Graduates Eight Years Later, by GPA 5  \n2. Federal Lending to Undergraduates in the 2015–2016 Academic Year 12  \n3. Effects of Possible Approaches to Changing Federal Student Aid 18  \nFigures  \n1. Percentage of Students Who Completed a Postsecondary Program After  \nTheir Initial Enrollment in the 2003–2004 Academic Year, by Year 4  \n2. Distribution of Annual Earnings in 2016 Among People Ages 35 to 44, by  \nHighest Degree Attained 6  \n3. Trends in Federal Aid for Postsecondary Students, by Academic Year 7  \nFederal Aid for Postsecondary Students  \nSummary  \nThe federal government supports postsecondary students through loan programs such as the William D. Ford Federal Direct Loan Program, grants such as those made by the Federal Pell Grant Program, and tax preferences such as the American Opportunity Tax Credit (AOTC) . The amounts of support have varied in recent years, but in fiscal year 2017, the federal government financed roughly $100 billion in student loans and provided directly to students and their families $30 billion in needbased grants and $30 billion in income tax preferences, according to estimates by the Congressional Budget Office and the staff of the Joint Committee on Taxation (JCT) .  \nHigher education provides many benefits to students, including higher earnings, and to society, including increased tax receipts and reduced dependence on government assistance. But, in CBO’s view, there is no consensus on whether the current suite of federal programs and tax credits, or the amount of money devoted to them, provides too much or too little financial support for students. In this report, CBO examines some reasons why the federal government offers financial support to students and how the current system helps alleviate some of the challenges students encounter. CBO also considers several potential approaches to changing federal support.  \nWhy Does the Federal Government Offer Student Aid?  \nSeveral barriers may deter some students from obtaining education that would benefit them and society as a whole:  \n• Students May Lack Access to Financing. Private loans for higher education can be expensive or unavailable, even when the associated degree would be expected to","cbCaiej48IeEhq1s","https://ap.wps.com/l/cbCaiej48IeEhq1s","pdf",1019679,29,"English","# Summary\n# Why Does the Federal Government Offer Student Aid?\n## What Aid Does the Government Offer and What Is Its Impact?\n## What Are Some Approaches to Changing Student Aid?\n# The Motivations for Federal Student Aid\n## Private Financing Is Limited\n## The Returns on an Education Are Uncertain\n## Subsidies for Education Can Benefit Society Beyond Their Effects on Students\n## Federal Student Aid and Its effects\n# Approaches to Changing Federal Aid for Postsecondary Students","[{\"question\":\"How does the federal government support postsecondary students?\",\"answer\":\"Through federal student loan programs, need-based grants such as the Federal Pell Grant, and tax preferences like the American Opportunity Tax Credit.\"},{\"question\":\"Why does the report say some students may not pursue higher education?\",\"answer\":\"It highlights barriers such as limited access to financing, the uncertainty of returns, and the fact that some benefits do not directly accrue to students.\"},{\"question\":\"What approaches to changing federal aid does the report consider?\",\"answer\":\"It discusses options including changing how much financing is available, changing students’ financial uncertainty, and changing subsidies.\"}]","Federal Aid for Postsecondary Students | PDF",1792047384,73]