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The Impact of Developing Hispanic-Serving Institution Program on College Persistence, Completion Rates, and Student Debt

Author

Listed:
  • Li Feng
  • Yao-Yu Chih
  • Yunwei Gai
  • Lynn MacDonald

Abstract

The Developing Hispanic-Serving Institution (DHSI) Program is one of the largest federal grant programs that support Hispanic-Serving Institutions. We employ an eleven-year panel dataset of U.S. higher education institutions to implement a difference-in-differences (DID) design, two-way fixed effect model (TWFE), and propensity score matching (PSM) to compare DHSI grantee institutions with other Title V eligible higher education institutions that did not receive DHSI funding. We find that the receipt of DHSI grant funding helps these institutions significantly improve their retention rates (2~ percentage points), completion rates (1-3 percentage points), and reduce their students’ debt level (e.g., $500~$1000 lower for graduated students). Our back-of-the-envelope cost-benefit calculation shows that the DHSI program benefits exceed cost.

Suggested Citation

  • Li Feng & Yao-Yu Chih & Yunwei Gai & Lynn MacDonald, 2024. "The Impact of Developing Hispanic-Serving Institution Program on College Persistence, Completion Rates, and Student Debt," CESifo Working Paper Series 11392, CESifo.
    • Handle: RePEc:ces:ceswps:_11392
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    References listed on IDEAS

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    1. Andrews, Rodney J. & Imberman, Scott A. & Lovenheim, Michael F., 2020. "Recruiting and supporting low-income, high-achieving students at flagship universities," Economics of Education Review, Elsevier, vol. 74(C).
    2. Dynarski, Mark, 1994. "Who defaults on student loans? Findings from the National Postsecondary Student Aid Study," Economics of Education Review, Elsevier, vol. 13(1), pages 55-68, March.
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    More about this item

    Keywords

    Developing Hispanic-Serving Institution (DHSI) Program; Hispanic-Serving Institutions (HIS); difference-in-differences (DID) design; two-way fixed effect model (TWFE); propensity score matching (PSM) approach;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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