The Pros and Cons of Short-Term Pell Grants

As a general rule, when the government intervenes in free economic transactions in a market, it distorts that market and makes people worse off. We might not see such negative effects as clearly as we can see the benefits to those whom the government directly helps—the negative effects can be broad and indirect. But such disadvantages are real. Short-term Pell grants are no exception. First, the context: Pell grants provide college students with thousands of dollars per year based on their ability to pay, the cost of university attendance, and the degree to which a student is part-time or full-time....