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Societal Benefits of Aid to Low-Income Students

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A new study by the Federal Reserve Bank of Minneapolis shows that federal aid to low-income students, as opposed to all students, offers significant economic payoff to the country. The study notes that providing enough aid to low-income students is expensive, but finds that ‘the economic optimum is achieved when financial aid is strictly directed to students from low-income households. For them, financial aid is the key to attending college; without it, higher education is not an option.’”

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