"Federal student aid awards are technically awarded without regard to race, but researchers detail in a new National Bureau of Economic Research working paper how the financial aid system actually reflects and adds to disparities in wealth among demographic groups," Inside Higher Ed reports. 

... "Justin Draeger, president of the National Association of Student Financial Aid Administrators, said equity conversations about federal financial aid often come down to conflicts about distribution, which is determined by the formula. The report highlights one of the trade-offs involved in those discussions, and it’s good to understand what those are, he said."

“'The report clearly highlights the potential inadequacy in federal methodology, but then we have to balance that against multiple other competing public policies,' Draeger said. 'One of those debates is dealing with the fact that the complexity of the formula and application may deter applicants from applying for federal student aid—the very students we most want to get federal student aid, and that’s a debate we’ve been having for decades. I can appreciate where they’re coming from because they are highlighting an inadequacy, but there are competing public policies that we’re also trying to balance this against.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 9/28/2022