With the aid of a diagram, an analysis is presented of the circumstances under which a Basic Educational Opportunity Grant (BEOG) award can increase when the recipient's college raises its charges. The starting point for the analysis is a specification of how to compute BEOG awards as a function of the cost of education (COE) and the expected family contribution (EFC). Examples are cited which demonstrate that under some circumstances an institution can have a windfall at the expense of the federal government by raising its charges. However, an unsophisticated attempt to capture that windfall could backfire. (SW)