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Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study

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Author Info
David M. Linsenmeier
Harvey S. Rosen
Cecilia Elena Rouse

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Abstract

We study the effects of a change in financial aid policy introduced by a Northeastern university in 1998. Prior to that time, the university's financial aid packages for low-income students consisted of grants, loans, and campus jobs. After the change, the entire loan portion of the package for low-income students was replaced with grants. We find the program increased the likelihood of matriculation by low-income students by about 3 percentage points, although the effect is not statistically significant. The effect among low-income minority students was between 8 and 10 percentage points and statistically significant at the 10 percent level.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9228.

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Date of creation: Sep 2002
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Handle: RePEc:nbr:nberwo:9228

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I2 - Health, Education, and Welfare - - Education

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ronald G. Ehrenberg & Daniel R. Sherman, 1984. "Optimal Financial Aid Policies for a Selective University," NBER Working Papers 1014, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Feldstein, Martin, 1995. "College Scholarship Rules and Private Saving," American Economic Review, American Economic Association, vol. 85(3), pages 552-66, June. [Downloadable!] (restricted)
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  3. 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. [Downloadable!] (restricted)
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  4. Susan Dynarski, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," NBER Working Papers 7756, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Stephen L. DeJardins & Dennis A. Ahlburg & Brian McCall, . "An Integrated Model of Application, Admission, Enrollment, and Financial Aid," Working Papers 0104, Industrial Relations Center, University of Minnesota (Twin Cities Campus). [Downloadable!]
  2. Sandra E. Black & Amir Sufi, 2002. "Who Goes to College? Differential Enrollment by Race and Family Background," NBER Working Papers 9310, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Yolanda K. Kodrzycki, 2004. "College completion gaps between blacks and whites: what accounts for regional differences," New England Economic Review, Federal Reserve Bank of Boston, pages 37-62. [Downloadable!]
  4. Steiner, Viktor & Wrohlich, Katharina, 2008. "Financial Student Aid and Enrollment into Higher Education: New Evidence from Germany," IZA Discussion Papers 3601, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Canton, Erik & Blom, Andreas, 2004. "Can student loans improve accessibility to higher education and student performance? An impact study of the case of SOFES, Mexico," Policy Research Working Paper Series 3425, The World Bank. [Downloadable!]
  6. Jesse Rothstein & Cecilia Elena Rouse, 2007. "Constrained After College: Student Loans and Early Career Occupational Choices," NBER Working Papers 13117, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
    Other versions:
  8. Thomas Kane, 2004. "Evaluating the Impact of the D.C. Tution Assistance Grant Program," NBER Working Papers 10658, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Susan Dynarski, 2002. "The Behavioral and Distributional Implications of Aid for College," American Economic Review, American Economic Association, vol. 92(2), pages 279-285, May. [Downloadable!]
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