The inefficiencies and inequities perceived to be associated with the prevailing terms of access to educational opportunity have provided the primary rationales for public policy initiatives in the area of student financial aid. It can be argued, however, that ostensible social or external benefits occurring from these aid programs constitute an exceptionally weak basis for advocating public support for or involvement in advanced education and training. Equity and efficiency in the schooling process, in labor markets, and in the provision of such public goods as research, do not require governmental intrusion, either fiscal or regulatory, into the terms of access to advanced education and training. Only in response to market failures can a persuasive case be made for governmental action. (Author/MSE)