parents’ siblings and cousins, their spouses, and the spouses’ siblings. Using various human capital measures, we show that … extended family relative to the parents increases …

We study the optimal design of student financial aid as a function of parental income. We derive optimal financial aid … formulas in a general model. For a simple model version, we derive mild conditions on primitives under which poorer students …, labor supply in college, and uncertain returns. Optimal financial aid is strongly declining in parental income even without …