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Do no-loan policies change the matriculation patterns of low-income students?

  • Waddell, Glen R.
  • Singell Jr., Larry D.

Abstract We examine whether there is discernable variation in the matriculation patterns of low-income students at public flagship institutions around changes in institutional financial-aid policies that target resident, low-income students with need-based aid. Overall, our results suggests that need is not being met on the extensive margin and that enrollment levels actually fall with the introduction of targeted aid. However, the enrollments of more-needy students tend to fall less and students matriculating to aid-innovating institutions tend to have more financial need after the introduction of income-targeted aid. This suggests that along the intensive margin income-targeted aid may still be benefiting the most needy. We also find that institutions that introduce income-targeted aid subsequently enroll more-geographically distant students, suggestive of improved matching.

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

Volume (Year): 30 (2011)
Issue (Month): 2 (April)
Pages: 203-214

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Handle: RePEc:eee:ecoedu:v:30:y:2011:i:2:p:203-214
Contact details of provider: Web page: http://www.elsevier.com/locate/econedurev

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