Working Paper: NBER ID: w17834
Authors: Susan Dynarski; Mark Wiederspan
Abstract: Each year, fourteen million households seeking federal aid for college complete a detailed questionnaire about their finances, the Free Application for Federal Student Aid (FAFSA). At 116 questions, the FAFSA is almost as long as IRS Form 1040 and substantially longer than Forms 1040EZ and 1040A. Aid for college is intended to increase college attendance by reducing its price and loosening liquidity constraints. Economic theory, empirical evidence and common sense suggest that complexity in aid could undermine its ability to affect schooling decisions. In 2006, Dynarski and Scott-Clayton published an analysis of complexity in the aid system that generated considerable discussion in academic and policy circles. Over the next few years, complexity in the aid system drew the attention of the media, advocacy groups, presidential candidates, the National Economic Council and the Council of Economic Advisers. A flurry of legislative and agency activity followed. In this article, we provide a five-year retrospective of what has changed in the aid application process, what has not, and the possibilities for future reform.
Keywords: No keywords provided
JEL Codes: I22; I28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| complexity of FAFSA (I22) | college attendance (I23) |
| complexity of FAFSA (I22) | barriers for students (I24) |
| complexity of FAFSA (I22) | accessibility for students (I24) |
| simplification of aid process (F35) | understanding of aid (F35) |
| complexity of FAFSA (I22) | confounding in aid availability and college attendance (I24) |
| simplification of FAFSA (I22) | college attendance (I23) |