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Early commitment on financial aid and college decision making of poor students: Evidence from a randomized evaluation in rural China

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Author Info

  • Liu, Chengfang
  • Zhang, Linxiu
  • Luo, Renfu
  • Wang, Xiaobing
  • Rozelle, Scott
  • Sharbono, Brian
  • Adams, Jennifer
  • Shi, Yaojiang
  • Yue, Ai
  • Li, Hongbin
  • Glauben, Thomas

Abstract

Many educational systems have struggled with the question about how best to give out financial aid. In particular, if students do not know the amount of financial aid that they can receive before they make a decision about where to go to college and what major to study, it may distort their decision. This study utilizes an experiment (implemented by the authors as a Randomized Control Trial) to analyze whether or not an alternative way of providing financial aid--by providing an early commitment on financial aid during the student's senior year of high school instead of after entering college--affects the college decision making of poor students in rural China. We find that if early commitments are made early enough; and they are large enough, students will make less distorting college decisions.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 30 (2011)
Issue (Month): 4 (August)
Pages: 627-640

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Handle: RePEc:eee:ecoedu:v:30:y:2011:i:4:p:627-640

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Web page: http://www.elsevier.com/locate/econedurev

Related research

Keywords: Student financial aid College decision Rural China;

References

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  1. Singell, Larry Jr., 2004. "Come and stay a while: does financial aid effect retention conditioned on enrollment at a large public university?," Economics of Education Review, Elsevier, vol. 23(5), pages 459-471, October.
  2. Schwartz, J. Brad, 1985. "Student financial aid and the college enrollment decision: the effects of public and private grants and interest subsidies," Economics of Education Review, Elsevier, vol. 4(2), pages 129-144, April.
  3. David M. Linsenmeier & Harvey S. Rosen & Cecilia Elena Rouse, 2006. "Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 126-145, February.
  4. Balderston, Frederick, 1997. "Tuition and financial aid in higher education: The case of California," Economics of Education Review, Elsevier, vol. 16(3), pages 337-343, June.
  5. Olivia, Susan & Gibson, John & Rozelle, Scott & Huang, Jikun & Deng, Xiangzheng, 2011. "Mapping poverty in rural China: how much does the environment matter?," Environment and Development Economics, Cambridge University Press, vol. 16(02), pages 129-153, April.
  6. Thomas J. Kane, 2003. "A Quasi-Experimental Estimate of the Impact of Financial Aid on College-Going," NBER Working Papers 9703, National Bureau of Economic Research, Inc.
  7. Christopher Avery & Caroline M. Hoxby, 2003. "Do and Should Financial Aid Packages Affect Students' College Choices?," NBER Working Papers 9482, National Bureau of Economic Research, Inc.
  8. Hongbin Li & Pak Wai Liu & Ning Ma & Junsen Zhang, 2005. "Does Education Pay in Urban China? Estimating Returns to Education Using Twins," Discussion Papers 00013, Chinese University of Hong Kong, Department of Economics.
  9. Baum, Sandra R. & Schwartz, Saul, 1988. "Merit aid to college students," Economics of Education Review, Elsevier, vol. 7(1), pages 127-134, February.
  10. Terry Long, B.Bridget, 2004. "How have college decisions changed over time? An application of the conditional logistic choice model," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 271-296.
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Cited by:
  1. Zhang, Linxiu & Yi, Hongmei & Luo, Renfu & Liu, Changfang & Rozelle, Scott, 2012. "The Human Capital Roots of the Middle Income Trap: The Case of China," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 131119, International Association of Agricultural Economists.
  2. Loyalka, Prashant & Song, Yingquan & Wei, Jianguo, 2012. "The distribution of financial aid in China: Is aid reaching poor students?," China Economic Review, Elsevier, vol. 23(4), pages 898-917.
  3. Loyalka, Prashant & Song, Yingquan & Wei, Jianguo & Zhong, Weiping & Rozelle, Scott, 2013. "Information, college decisions and financial aid: Evidence from a cluster-randomized controlled trial in China," Economics of Education Review, Elsevier, vol. 36(C), pages 26-40.
  4. Wang, Xiaobing & Liu, Chengfang & Zhang, Linxiu & Yue, Ai & Shi, Yaojiang & Chu, James & Rozelle, Scott, 2013. "Does financial aid help poor students succeed in college?," China Economic Review, Elsevier, vol. 25(C), pages 27-43.

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