Mark Kantrowitz, Publisher of FinAid.org and FastWeb.com, has released a new study, Targeting of Student Aid Programs According to Financial Need. The study evaluates the distribution of financial aid (whether given based on need or not) according to financial need. Kantrowitz's policy paper analyzes the effectiveness of the targeting of undergraduate student aid programs according to financial need.

Kantrowitz's report concludes that:

• A more systematic, equitable and better-targeted distribution of the funding could be achieved by eliminating the SEOG program, rolling the funding into the Pell Grant program, allowing the EFC to go negative, and increasing the maximum Pell Grant by the absolute value of the EFC for students with a negative EFC.

• Funding would be more effectively targeted at students with financial need by eliminating the Perkins and subsidized Stafford loan programs (while retaining the unsubsidized Stafford loan program) and rolling the savings into the Pell Grant program.

• Funding would be more effectively targeted at students with financial need by eliminating all three education tax benefits and rolling the savings into the Pell Grant program.

Posted 05/01/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.