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Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program

  • Gabrielle Fack

    (Universitat Pompeu Fabra [Barcelona])

  • Julien Grenet

    (PSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - École des Ponts ParisTech (ENPC) - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)

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    Using comprehensive administrative data on France's single largest financial aid program, this paper provides new evidence on the impact of large-scale need-based grant programs on the college enrollment decisions, persistence and graduation rates of low-income students. We exploit sharp discontinuities in the grant eligibility formula to identify the impact of aid on student out-comes at different levels of study. We find that eligibility for an annual cash allowance of 1,500 euros increases college enrollment rates by up to 5 percent-age points. Moreover, we show that need-based grants have positive effects on student persistence and degree completion.

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    File URL: https://halshs.archives-ouvertes.fr/halshs-00870546/document
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    Paper provided by HAL in its series PSE Working Papers with number halshs-00870546.

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    Date of creation: Oct 2013
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    Handle: RePEc:hal:psewpa:halshs-00870546
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00870546
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    14. Neil Seftor Sarah E Turner, 2002. "Back to School Federal Student Aid Policy and Adult College Enrollment," Mathematica Policy Research Reports 28f7ccb624fd4f2a9a20d7075, Mathematica Policy Research.
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    16. 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.
    17. Thomas J. Kane, 2007. "Evaluating the Impact of the D.C. Tuition Assistance Grant Program," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
    18. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
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    20. Beffy, Magali & Fougère, Denis & Maurel, Arnaud, 2013. "The Effect of College Employment on Graduation: Evidence from France," CEPR Discussion Papers 9565, C.E.P.R. Discussion Papers.
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