Four general "fairness criteria" are presented for evaluating student financial aid award rules. Application to current Pell Grant rules indicated violation of two of the criteria. Recommendations include replacing the "percent-of-cost" rule with a "percent-of-need" standard, developing a broader class of rules, and evaluating budgetary effects of…

This article investigates the extent to which student borrowers might be induced to prepay by an offer from the government to share a portion of its savings expected from prepayment. The analysis suggests that potential savings are not likely to be large enough to induce significant prepayment. (Author/MLW)

A discussion of the two systems of need analysis used for Pell grants and other large federal need-based student-aid programs looks at the reasons for different systems and examines the usefulness of simplification to one. Budgetary feasibility, distributional implications, alternative cost-saving reforms, and effects on public confidence are…