Student aid in higher education has recently become a hot-button
issue. Parents trying to pay for their children's education,
college administrators competing for students, and even President
Bill Clinton, whose recently proposed tax breaks for college would
change sharply the federal government's financial commitment to
higher education, have staked a claim in its resolution. In "The
Student Aid Game," Michael McPherson and Morton Owen Schapiro
explain how both colleges and governments are struggling to cope
with a rapidly changing marketplace, and show how sound policies
can help preserve the strengths and remedy some emerging weaknesses
of American higher education.
McPherson and Schapiro offer a detailed look at how
undergraduate education is financed in the United States,
highlighting differences across sectors and for students of
differing family backgrounds. They review the implications of
recent financing trends for access to and choice of undergraduate
college and gauge the implications of these national trends for the
future of college opportunity. The authors examine how student aid
fits into college budgets, how aid and pricing decisions are shaped
by government higher education policies, and how competition has
radically reshaped the way colleges think about the strategic role
of student aid. Of particular interest is the issue of merit aid.
McPherson and Schapiro consider the attractions and pitfalls of
merit aid from the viewpoint of students, institutions, and
society.
"The Student Aid Game" concludes with an examination of policy
options for both government and individual institutions. McPherson
and Schapiro argue that the federal government needs to keep its
attention focused on providing access to college for needy
students, while colleges themselves need to constrain their search
for strategic advantage by sticking to aid and admission policies
they are willing to articulate and defend publicly.
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