Article ID Journal Published Year Pages File Type
354773 Economics of Education Review 2011 12 Pages PDF
Abstract

We examine whether there is discernable variation in the matriculation patterns of low-income students at public flagship institutions around changes in institutional financial-aid policies that target resident, low-income students with need-based aid. Overall, our results suggests that need is not being met on the extensive margin and that enrollment levels actually fall with the introduction of targeted aid. However, the enrollments of more-needy students tend to fall less and students matriculating to aid-innovating institutions tend to have more financial need after the introduction of income-targeted aid. This suggests that along the intensive margin income-targeted aid may still be benefiting the most needy. We also find that institutions that introduce income-targeted aid subsequently enroll more-geographically distant students, suggestive of improved matching.

Research highlights▶ There is variation in the matriculation patterns of low-income students at public flagship institutions around changes in institutional financial-aid policies that target resident, low-income students with need-based aid. ▶ Our results suggests that need is not being met on the extensive margin and that enrollment levels actually fall with the introduction of targeted aid. However, the enrollments of more-needy students tend to fall less and students matriculating to aid-innovating institutions tend to have more financial need after the introduction of income-targeted aid. ▶ This suggests that along the intensive margin income-targeted aid may still be benefiting the most needy. ▶ We also find that institutions that introduce income-targeted aid subsequently enroll more-geographically distant students, suggestive of improved matching.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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