Financial aid and for-profit colleges: Does aid encourage entry?
Concerns over rising college tuition and slow economic growth have brought renewed attention to the role of federal and state financial aid programs in opening access to education. Despite a large body of literature examining the effects of grant aid on four-year and public two-year college enrollment, for-profit colleges-particularly the vast majority that offer two-year degrees and certificates-have largely been ignored. Using panel data methods and a new administrative data set of for-profit colleges operating in California between 1989 and 2003, I assess the impact of the federal Pell Grant program, the G.I. Bill, and California's Cal Grant program on the net number of for-profit colleges per county. The results suggest that for both Pell and Cal Grants, increases in the per-student maximum award encourage for-profit entry. This relationship is particularly strong in counties with high adult poverty levels, where more students are eligible for aid. Further, these gains in the private sector do not appear to come at the expense of the public sector. Rather, public community colleges also experience enrollment gains as the generosity of Pell and Cal Grants increases, although this reaction appears to be weaker than the reaction of for-profits. © 2010 by the Association for Public Policy Analysis and Management.
Volume (Year): 29 (2010)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/34787/home|
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.:
- Ronald G. Ehrenberg & Daniel R. Sherman, 1984.
"Optimal Financial Aid Policies for a Selective University,"
Journal of Human Resources,
University of Wisconsin Press, vol. 19(2), pages 202-230.
- Ronald G. Ehrenberg & Daniel R. Sherman, 1982. "Optimal Financial Aid Policies for a Selective University," NBER Working Papers 1014, National Bureau of Economic Research, Inc.
- David M. Linsenmeier & Harvey S. Rosen & Cecilia Elena Rouse, 2002.
"Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study,"
NBER Working Papers
9228, National Bureau of Economic Research, Inc.
- David M. Linsenmeier & Harvey S. Rosen & Cecilia Elena Rouse, 2006. "Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 126-145, February.
- 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.
- Susan Dynarski, 2002.
"The Consequences of Merit Aid,"
NBER Working Papers
9400, National Bureau of Economic Research, Inc.
- Michael Rizzo & Ronald G. Ehrenberg, 2004.
"Resident and Nonresident Tuition and Enrollment at Flagship State Universities,"
in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 303-354
National Bureau of Economic Research, Inc.
- 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.
- Timothy F. Bresnahan & Peter C. Reiss, 1987. "Do Entry Conditions Vary across Markets?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3), pages 833-882.
- Joshua D. Angrist, 1993. "The Effect of Veterans Benefits on Education and Earnings," ILR Review, Cornell University, ILR School, vol. 46(4), pages 637-652, July.
- Marcus Stanley, 2003. "College Education and the Midcentury GI Bills," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 671-708.
- Neil S. Seftor & Sarah E. Turner, .
"Back to School: Federal Student Aid Policy and Adult College Enrollment,"
Mathematica Policy Research Reports
28f7ccb624fd4f2a9a20d7075, Mathematica Policy Research.
- 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.
When requesting a correction, please mention this item's handle: RePEc:wly:jpamgt:v:29:y:2010:i:3:p:526-552. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.