IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/jbhy4.html
   My bibliography  Save this paper

Why should financial aid affect university participation? A review of the literature

Author

Listed:
  • Vettoretto, Elena
  • Azzolini, Davide
  • Vergolini, Loris

Abstract

This contribution reviews the literature on the role of financial aid in enhancing university participation. This aim will be reached through three main steps. First, we describe a theoretical framework based on rational action theory that could explain the effects exerted by the different measures. Second, we analyse the main forms of financial aid developed by the policy makers in Europe and in the US. More precisely, we look at the role played by: grants, tuition fees, loans and a novel approach in the financial aid debate: asset building. The paper attempts to provide an overview of the different measures’ effects on enrolment, academic performance and completion. Third, based on the reviewed literature, the paper tries to derive some general policy implications for the Italian case.

Suggested Citation

  • Vettoretto, Elena & Azzolini, Davide & Vergolini, Loris, 2019. "Why should financial aid affect university participation? A review of the literature," SocArXiv jbhy4, Center for Open Science.
    • Handle: RePEc:osf:socarx:jbhy4
    DOI: 10.31219/osf.io/jbhy4
    as

    Download full text from publisher

    File URL: https://osf.io/download/5cd53268f8214b0018894157/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/jbhy4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hans J. Baumgartner & Viktor Steiner, 2005. "Student Aid, Repayment Obligations and Enrolment in Higher Education in Germany – Evidence from a “Natural Experiment”," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(1), pages 29-38.
    2. Dynarski, Susan, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(3), pages 629-662, September.
    3. Lorraine Dearden & Emla Fitzsimons & Gill Wyness, 2011. "The Impact of Tuition Fees and Support on University Participation in the UK," CEE Discussion Papers 0126, Centre for the Economics of Education, LSE.
    4. Dynarski, Susan M. & Scott–Clayton, Judith E., 2006. "The Cost of Complexity in Federal Student Aid: Lessons From Optimal Tax Theory and Behavioral Economics," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(2), pages 319-356, June.
    5. Susan M. Dynarski, 2003. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," American Economic Review, American Economic Association, vol. 93(1), pages 279-288, March.
    6. Christopher Cornwell & David B. Mustard & Deepa J. Sridhar, 2006. "The Enrollment Effects of Merit-Based Financial Aid: Evidence from Georgia's HOPE Program," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 761-786, October.
    7. Davide Azzolini & Loris Vergolini, 2014. "Tracking, Inequality and Education Policy. Looking for a Recipe for the Italian Case," FBK-IRVAPP Working Papers 2014-08, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    8. Azzolini, Davide & Martini, Alberto & Romano, Barbara & Vergolini, Loris, 2018. "Affording college with the help of asset building: First experimental impacts from Italy," Economics Letters, Elsevier, vol. 169(C), pages 27-30.
    9. Benjamin L. Castleman & Bridget Terry Long, 2016. "Looking beyond Enrollment: The Causal Effect of Need-Based Grants on College Access, Persistence, and Graduation," Journal of Labor Economics, University of Chicago Press, vol. 34(4), pages 1023-1073.
    10. Cheatham, Gregory A. & Elliott, William, 2013. "The effects of family college savings on postsecondary school enrollment rates of students with disabilities," Economics of Education Review, Elsevier, vol. 33(C), pages 95-111.
    11. Angela Boatman & Bridget Terry Long, 2016. "Does Financial Aid Impact College Student Engagement?," Research in Higher Education, Springer;Association for Institutional Research, vol. 57(6), pages 653-681, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lindsay C. Page & Judith Scott-Clayton, 2015. "Improving College Access in the United States: Barriers and Policy Responses," NBER Working Papers 21781, National Bureau of Economic Research, Inc.
    2. Page, Lindsay C. & Scott-Clayton, Judith, 2016. "Improving college access in the United States: Barriers and policy responses," Economics of Education Review, Elsevier, vol. 51(C), pages 4-22.
    3. Elsayed, Mahmoud A.A., 2016. "The Impact of Education Tax Benefits on College Completion," Economics of Education Review, Elsevier, vol. 53(C), pages 16-30.
    4. Ferreyra,Maria Marta & Garriga,Carlos & Martin,Juan David & Sanchez Diaz,Angelica Maria, 2020. "Raising College Access and Completion : How Much Can Free College Help ?," Policy Research Working Paper Series 9428, The World Bank.
    5. David Deming & Susan Dynarski, 2009. "Into College, Out of Poverty? Policies to Increase the Postsecondary Attainment of the Poor," NBER Working Papers 15387, National Bureau of Economic Research, Inc.
    6. Gabrielle Fack & Julien Grenet, 2015. "Improving College Access and Success for Low-Income Students: Evidence from a Large Need-Based Grant Program," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 1-34, April.
    7. Lovenheim, Michael F. & Owens, Emily G., 2014. "Does federal financial aid affect college enrollment? Evidence from drug offenders and the Higher Education Act of 1998," Journal of Urban Economics, Elsevier, vol. 81(C), pages 1-13.
    8. Eric P. Bettinger & Bridget Terry Long & Philip Oreopoulos & Lisa Sanbonmatsu, 2009. "The Role of Simplification and Information in College Decisions: Results from the H&R Block FAFSA Experiment," NBER Working Papers 15361, National Bureau of Economic Research, Inc.
    9. Nguyen, Hieu, 2020. "Free college? Assessing enrollment responses to the Tennessee Promise program," Labour Economics, Elsevier, vol. 66(C).
    10. Vivian Yuen Ting Liu, 2020. "Is School Out for the Summer? The Impact of Year-Round Pell Grants on Academic and Employment Outcomes of Community College Students," Education Finance and Policy, MIT Press, vol. 15(2), pages 241-269, Spring.
    11. Bednar, Steven & Gicheva, Dora, 2013. "Tax benefits for graduate education: Incentives for whom?," Economics of Education Review, Elsevier, vol. 36(C), pages 181-197.
    12. Molina, Teresa & Rivadeneyra, Ivan, 2021. "The schooling and labor market effects of eliminating university tuition in Ecuador," Journal of Public Economics, Elsevier, vol. 196(C).
    13. Susan Dynarski & Judith Scott-Clayton & Mark Wiederspan, 2013. "Simplifying Tax Incentives and Aid for College: Progress and Prospects," NBER Chapters, in: Tax Policy and the Economy, Volume 27, pages 161-201, National Bureau of Economic Research, Inc.
    14. Frisvold, David E. & Pitts, Melinda, 2018. "State Merit Aid Programs and Youth Labor Market Attachment," IZA Discussion Papers 11557, Institute of Labor Economics (IZA).
    15. 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).
    16. Viktor Steiner & Katharina Wrohlich, 2012. "Financial Student Aid and Enrollment in Higher Education: New Evidence from Germany," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(1), pages 124-147, March.
    17. repec:hal:spmain:info:hdl:2441/527ht1a96e837pq2dubgo2953q is not listed on IDEAS
    18. Deven E. Carlson & Alex Schmidt & Sarah Souders & Barbara L. Wolfe, 2020. "The Effects of Need-Based Financial Aid on Employment and Earnings: Experimental Evidence from the Fund for Wisconsin Scholars," NBER Working Papers 27125, National Bureau of Economic Research, Inc.
    19. Waddell, Glen R. & Singell Jr., Larry D., 2011. "Do no-loan policies change the matriculation patterns of low-income students?," Economics of Education Review, Elsevier, vol. 30(2), pages 203-214, April.
    20. Hickman, Daniel C., 2009. "The effects of higher education policy on the location decision of individuals: Evidence from Florida's Bright Futures Scholarship Program," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 553-562, September.
    21. Brigitte C. Madrian, 2014. "Applying Insights from Behavioral Economics to Policy Design," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 663-688, August.

    More about this item

    JEL classification:

    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and 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:osf:socarx:jbhy4. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://arabixiv.org .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.