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Hope for the Pell? The Impact of Merit-Aid on Needy Students

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Author Info

  • Larry D. Singell

    () (University of Oregon Economics Department)

  • Glen R. Waddell

    () (University of Oregon Economics Department)

  • Bradley R. Curs

    () (University of Oregon Economics Department (Student))

Abstract

Prior empirical evidence finds that merit-aid programs such as the Georgia Hope Scholarship yield large and significant enrollment effects, whereas need-based aid programs such as the Pell Grant yield modest and often insignificant enrollment effects. This paper uses unpublished panel data on the number and level of Pell awards at Southern universities along with detailed institutional data from the National Center of Educational Statistics to examine whether the Georgia Hope Scholarship improved the college access of needy students relative to other Southern states. Fixed-effect analyses show that large increases in merit aid improve college access of needy students and leverage Hope Scholarship funds with greater federal Pell assistance. Whereas most institution-specific increases in both Pell enrollment and funding are found for two-year and less selective, four-year institutions, the results also suggest that Pell students are not crowded out of more selective schools by HopeÂ’s intent to retain the best Georgia high-school students.

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Bibliographic Info

Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2004-5.

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Length: 38
Date of creation: 01 Feb 2004
Date of revision:
Handle: RePEc:ore:uoecwp:2004-5

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Postal: 1285 University of Oregon, 435 PLC, Eugene, OR 97403-1285
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Web page: http://economics.uoregon.edu/
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Related research

Keywords: Pell; Hope Scholarship; College Access; Financial Aid;

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References

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  1. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-in-Differences Estimates?," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 249-275, February.
  2. Michael J. Rizzo & Ronald G. Ehrenberg, 2003. "Resident and Nonresident Tuition and Enrollment at Flagship State Universities," NBER Working Papers 9516, National Bureau of Economic Research, Inc.
  3. 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.
  4. 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.
  5. 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.
  6. Singell, Larry D, Jr & Stone, Joe A, 2002. "The Good, the Poor and the Wealthy: Who Responds Most to College Financial Aid?," Bulletin of Economic Research, Wiley Blackwell, vol. 54(4), pages 393-407, October.
  7. 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.
  8. Bridget Terry Long, 2004. "How do Financial Aid Policies Affect Colleges?: The Institutional Impact of the Georgia HOPE Scholarship," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
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Cited by:
  1. Monks, James, 2009. "The impact of merit-based financial aid on college enrollment: A field experiment," Economics of Education Review, Elsevier, vol. 28(1), pages 99-106, February.
  2. Kornrum-Byrne, Desiree, 2006. "Relationship Between Financial Aid Policies, Practices and Procedures at Texas Public Colleges and Universities," MPRA Paper 7651, University Library of Munich, Germany.

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