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Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program

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Author Info

  • Gabrielle Fack

    (Universitat Pompeu Fabra - Universitat Pompeu Fabra)

  • Julien Grenet

    (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

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    Abstract

    Using comprehensive administrative data on France's single largest financial aid program, this paper provides new evidence on the impact of large-scale need-based grant programs on the college enrollment decisions, persistence and graduation rates of low-income students. We exploit sharp discontinuities in the grant eligibility formula to identify the impact of aid on student out-comes at different levels of study. We find that eligibility for an annual cash allowance of 1,500 euros increases college enrollment rates by up to 5 percent-age points. Moreover, we show that need-based grants have positive effects on student persistence and degree completion.

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    File URL: http://halshs.archives-ouvertes.fr/docs/00/87/05/46/PDF/wp201333.pdf
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    Bibliographic Info

    Paper provided by HAL in its series PSE Working Papers with number halshs-00870546.

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    Date of creation: Oct 2013
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    Handle: RePEc:hal:psewpa:halshs-00870546

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00870546
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    Related research

    Keywords: Need-based grants ; College enrollment ; Student persistence ; Degree completion;

    References

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    2. Susan M. Dynarski, 1999. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," NBER Working Papers 7422, National Bureau of Economic Research, Inc.
    3. Katharine Abraham & Melissa A. Clark, 2003. "Financial Aid and Students' College Decisions: Evidence from the District of Columbia's Tuition Assistance Grant Program," NBER Working Papers 10112, National Bureau of Economic Research, Inc.
    4. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, Elsevier, vol. 142(2), pages 615-635, February.
    5. Stephanie Riegg Cellini & Claudia Goldin, 2012. "Does Federal Student Aid Raise Tuition? New Evidence on For-Profit Colleges," NBER Working Papers 17827, National Bureau of Economic Research, Inc.
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    8. Neil S. Seftor & NSarah E. Turner, 2002. "Back to School: Federal Student Aid Policy and Adult College Enrollment," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 336-352.
    9. John Bound & Sarah E. Turner, 1999. "Going to War and Going to College: Did World War II and the G.I. Bill Increase Educational Attainment for Returning Veterans?," NBER Working Papers 7452, National Bureau of Economic Research, Inc.
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    11. Dynarski, Susan & Wiederspan, Mark, 2012. "Student Aid Simplification: Looking Back And Looking Ahead," National Tax Journal, National Tax Association, vol. 65(1), pages 211-34, March.
    12. Goodman, Joshua, 2008. "Who merits financial aid?: Massachusetts' Adams Scholarship," Journal of Public Economics, Elsevier, Elsevier, vol. 92(10-11), pages 2121-2131, October.
    13. Susan Dynarski & Judith E. Scott-Clayton, 2008. "Complexity and Targeting in Federal Student Aid: A Quantitative Analysis," NBER Working Papers 13801, National Bureau of Economic Research, Inc.
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    16. Dynarski, Susan, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," National Tax Journal, National Tax Association, vol. 53(n. 3), pages 629-62, September.
    17. Susan Dynarski, 2005. "Building the Stock of College-Educated Labor," NBER Working Papers 11604, National Bureau of Economic Research, Inc.
    18. Thomas J. Kane, 2007. "Evaluating the Impact of the D.C. Tuition Assistance Grant Program," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
    19. Beffy, Magali & Fougère, Denis & Maurel, Arnaud, 2013. "The Effect of College Employment on Graduation: Evidence from France," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9565, C.E.P.R. Discussion Papers.
    20. Philip Oreopoulos & Daniel Lang & Joshua Angrist, 2009. "Incentives and Services for College Achievement: Evidence from a Randomized Trial," American Economic Journal: Applied Economics, American Economic Association, American Economic Association, vol. 1(1), pages 136-63, January.
    21. Thomas J. Kane, 1995. "Rising Public College Tuition and College Entry: How Well Do Public Subsidies Promote Access to College?," NBER Working Papers 5164, National Bureau of Economic Research, Inc.
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