The way in which costs enter the potential college student's calculation of the benefits of college attendance is examined. In particular, the paper considers how costs not considered in financial aid need analysis can increase college attendance costs and thereby decrease net benefits of college attendance for those who use financial aid. The sixth in a financial aid research series, this report offers information on the following topics and subtopics: (1) economic theory; (2) college attendance costs (opportunity costs, financing costs, and risk costs); (3) equity of higher educational participation (females, nonwhite minorities, and low income students); (4) student financial aid policy issues (negative family contribution, student aid versus public aid, net benefits of college, and risk and loan default); (5) the shift from grants to loans (minority issues and loan defaults and the budget deficit); (6) and implications for higher education (including the specific problems of minority and low-income group enrollments in American higher education). Six figures and 7 references are included. (SM)