IDEAS home Printed from https://ideas.repec.org/p/cdl/cshedu/qt24j8945b.html
   My bibliography  Save this paper

AFFORDING THE DREAM: Student Debt and State Need-Based Grant Aid for Public University Students

Author

Listed:
  • Eaton, C.
  • Kulkarni, K.
  • Birgeneau, Robert
  • Brady, Henry
  • Hout, Michael

Abstract

Public research universities are a key vehicle for educational mobility. Yet rising student debt for undergraduate students has created new risks, particularly for lower income students at lower ranked universities. We find that student loan default rates reached 35 percent for low-income students at public universities with low research rankings during the Great Recession. Given these troubling loan default rates, we find encouraging evidence that a few U.S. states have adopted robust need-based grant aid programs to make college more affordable for low-income students. Such grant programs can cover tuition, room, and board costs. California, Wyoming, and New Jersey now spend more than $4,000 per low-income student, more than the federal expenditure on Pell Grants for their state. More than 30 states, however, spend less than 25 percent of the federal Pell Grant expenditure. We find that generous state aid programs are associated with lower actual costs of attendance for low-income students

Suggested Citation

  • Eaton, C. & Kulkarni, K. & Birgeneau, Robert & Brady, Henry & Hout, Michael, 2017. "AFFORDING THE DREAM: Student Debt and State Need-Based Grant Aid for Public University Students," University of California at Berkeley, Center for Studies in Higher Education qt24j8945b, Center for Studies in Higher Education, UC Berkeley.
  • Handle: RePEc:cdl:cshedu:qt24j8945b
    as

    Download full text from publisher

    File URL: https://www.escholarship.org/uc/item/24j8945b.pdf;origin=repeccitec
    Download Restriction: no

    References listed on IDEAS

    as
    1. Raj Chetty & John N. Friedman & Emmanuel Saez & Nicholas Turner & Danny Yagan, 2017. "Mobility Report Cards: The Role of Colleges in Intergenerational Mobility," NBER Working Papers 23618, National Bureau of Economic Research, Inc.
    2. John Bound & Michael F. Lovenheim & Sarah Turner, 2012. "Increasing Time to Baccalaureate Degree in the United States," Education Finance and Policy, MIT Press, vol. 7(4), pages 375-424, September.
    3. Beth Akers & Matthew M. Chingos, 2016. "Game of Loans: The Rhetoric and Reality of Student Debt," Economics Books, Princeton University Press, edition 1, number 10810, March.
    4. Webber, Douglas A. & Ehrenberg, Ronald G., 2010. "Do expenditures other than instructional expenditures affect graduation and persistence rates in American higher education?," Economics of Education Review, Elsevier, vol. 29(6), pages 947-958, December.
    5. Bound, John & Turner, Sarah, 2007. "Cohort crowding: How resources affect collegiate attainment," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 877-899, June.
    6. Christopher Avery & Sarah Turner, 2012. "Student Loans: Do College Students Borrow Too Much--Or Not Enough?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 165-192, Winter.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Education;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdl:cshedu:qt24j8945b. 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: (Lisa Schiff). General contact details of provider: https://escholarship.org/uc/cshe/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.