In the face of competition from other nations, higher education in the United States has slipped from the status it has enjoyed over the years. With the economic downturn and changing demographics, new challenges have emerged that necessitate reevaluation of higher education policies. One consistent trend in recent years has been the steady increase in college tuition rates which has put higher education out of reach for many capable aspiring students. The lack of accessibility of higher education is detrimental to the economic growth of the country since a vast number of talented students who cannot afford to go to, or stay in, college are not able to enter the job market as trained professionals. Financial aid policies can go a long way in addressing these issues. Redistributive policies geared toward capacity building are recommended to enhance accessibility of higher education. The short term outcomes of such policies will be an increase in equality of opportunity and diversity on college campuses, while in the long run such policy change will lead to economic prosperity of the country and uplift of the communities of the individuals who benefit from these policies.