I personally feel that the governemnt should only give aid to cover the cost of an education in a state school (only to those who need it ofcorse). If someone wants to attend someplase more expensive, then they can make up the difference on their own (work, or get loans/money from other sources).
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Anybody who does recieve grants and scholarships from the Federal Government are exceptional individuals
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or happen to belong to one of many groups that the government loves to throw money at (the example that springs to mind being the indians).