Dynarski, Susan M. and Judith E. Scott-Clayton. 2006. <em>The Cost of Complexity in Federal Student Aid: Lessons from Optimal Tax Theory and Behavioral Economics.</em> Cambridge, MA: National Bureau of Economic Research.<br />
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Dynarski and Scott-Clayton compare the federal income tax filing process to the FAFSA application process, and make the case that FAFSA simplification is not only feasible, but necessary to increase college enrollment for low-income students. They use optimal tax theory and behavioral economics to simulate changes to the FAFSA formula for calculating need, such as eliminating assets from the equation. The authors argue that reducing complexity in the application would make the federal aid allocation more efficient and equitable. The authors examine the FAFSA, the IRS 1040, 1040A, and 1040EZ forms, noting the number of questions and the time it takes to fill out each form. Dynarski and Scott-Clayton evaluate the time and resources required to learn how to navigate the application process and student aid system, which tend to discourage low-income families from applying.