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How do Financial Aid Policies Affect Colleges?: The Institutional Impact of the Georgia HOPE Scholarship

  • Bridget Terry Long

This paper examines the effects of financial aid policies on the behavior of post-secondary institutions. Using the introduction of the Georgia HOPE Scholarship as a natural experiment, it investigates the impact of the policy on college pricing, institution aid, expenditures, and state appropriations. The results suggest that four-year colleges in Georgia, particularly private institutions, did respond by increasing student charges. In the most extreme case, colleges recouped approximately 30 percent of the scholarship award. As a result, the institutional responses reduced the intended benefit of the scholarship and increased the cost of college for nonrecipients.

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File URL: http://jhr.uwpress.org/cgi/reprint/XXXIX/4/1045
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 39 (2004)
Issue (Month): 4 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:39:y:2004:i:4:p1045-1066
Contact details of provider: Web page: http://jhr.uwpress.org/

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