Over the next decade, Baby Boomers will be reaching retirement age in large numbers and the U.S. will be undergoing one of the most significant demographic shifts in its history. This demographic shift has important implications for the role of higher education as a provider of lifelong learning and for the changing composition of postsecondary…

In this paper, we use economic concepts to examine the choice that states make between giving appropriations to public colleges or need-based financial aid to students. We begin by reviewing the economic justification for state support for higher education. Next, we introduce a simple economic model for comparing and contrasting appropriations and…