A new paper from the Institute for Higher Education Policy outlines more than a dozen federal policy recommendations for improving the financial-aid system to increase college enrollment and completion.
The nonprofit Washington-based group recommends:
• Using Internal Revenue Service information to communicate potential financial-aid awards so families can plan ahead, similar to a Social Security statement of benefits;
• Creating a system of early financial-aid “accounts” to leverage family savings and public and private resources;
• Matching family college savings for low-income households through public or employer dollars; and
• Making the American Opportunity Tax Credit fully refundable so it can be used by low-income households.
