This article discusses the current student-aid system in American higher education and the policy issues surrounding it. The author asserts that it is time to consider serious reform of the complex system of federal, state, and institutional subsidies that has evolved to support postsecondary students. A rational long-term planning process never would have generated the array of programs that today's students face, with complicated application processes, inconsistent rules and regulations, and problematic interactions when students seek aid from multiple programs. Given the billions spent on student aid and the critical role of these subsidies both in opening opportunities and in developing a skilled and flexible workforce, people can no longer ignore the system's inequities and inefficiencies. (Contains 14 resources.)