How does a reduction from a felony to a misdemeanor change benefits like student financial aid or HUD housing?

In general, it is better to have a misdemeanor than a felony on your record.  However, this may depend on whether your misdemeanor record includes drug offenses.  For more detailed information, please see:

http://www.abacollateralconsequences.org/search/?jurisdiction=10 

or

http://nacdl.org/restoration/