Rethinking Grants and Loans

A report released today calls for an overhaul of the federal financial aid system, including ending subsidized loans, enrolling students in income-based repayment, and directing the savings from the changes to the Pell Grant. The report, “Increasing Return on Investment from Federal Student Aid,” was written by the National College Access Network and funded by the Bill & Melinda Gates Foundation, part of the philanthropy's push to influence financial aid policy. In all, the Gates Foundation awarded $3.3 million in grants to 16 groups for white papers on how to change the financial aid system to encourage college completion. Libby A. Nelson, Insider Higher Ed, December 5, 2012