Income and financial aid effects on persistence and degree attainment in public colleges (original) (raw)
Related papers
The Contribution of Financial Aid to Undergraduate Persistence. ASHE Annual Meeting Paper
1997
The effects of financial aid on persistence to Bachelor's degree were studied using data from the national longitudinal Beginning Postsecondary Student Survey for 1989-90 freshmen. The subsample of 3,188 students were enrolled full-time in four-year institutions; persistence was defined as attainment of the Bachelor's degree from the institution in which the student initially enrolled within 5 years. Descriptive statistics and path analysis were employed to examine the influence of different amounts, types (loans, grants, and/or work study), and combinations of financial aid. Findings suggest that receiving financial aid is not directly related to completing a Bachelor's degree within 5 years. However, the effectiveness of financial aid may depend upon the type and package of aid received; work study and grant-only aid packages both seemed to have positive direct effects upon persistence. The results also suggest that the effects of financial aid are primarily exerted indirectly through college grades. Analyses also suggest a negative effect: students who receive loans are less likely to complete their degrees within 5 years than their counterparts who do not receive financial aid. Findings also show that while the number of hours worked is unrelated to degree completion, work study aid increases degree completion rates. (Contains 53 references.) (SW)
Objectives. This study assesses whether need-based grants are equally conducive to the college persistence of students from various economic strata and the extent to which a redistribution of funds can narrow economic-based inequality in college persistence. Methods. To estimate the causal effect of need-based grants on several persistence outcomes the discontinuity created in the dollar amounts of Pell grants when the students have siblings attending college is exploited. The analyses use a nationally representative sample of students enrolled at four-year institutions in 1995. Results. While the allocation of Pell Grants responds to students' pecuniary constraints, institutional and state grants expand the circle of recipients to more well-off students. Yet, it is only the persistence of students from the bottom half of the income distribution that is sensitive to aid amounts. If the need-based funds granted to affluent students had been diverted to these students, the gap in first-year persistence would have been closed. Conclusions. For a redistribution of funds to boost degree attainment and achieve equality of educational opportunity it must be based on stricter means-tested allocations of nonfederal funds as they are the main source of need-based aid.
Journal of College Student Retention: Research, Theory and Practice, 2018
Despite concerted efforts to increase participation in advanced placement (AP) and dual credit (DC) programs, their efficacy remains unexplored. Drawing upon St. John's model as the conceptual framework, this study employed a discrete-time event history analysis to examine the interplay between forms of financial aid and persistence toward degree completion for students participating in DC and AP programs and enrolling in a large, multicampus, Midwestern, U.S. University. Firsttime, first-year baccalaureate degree-seeking students who began studies in Fall 2012 were tracked for 4 years. The findings suggest that many factors are significantly related to college success, including student demographics such as race (especially Latino identity), first-generation status, housing status, socioeconomic status, and dependency status; high school performance, AP/DC participation, and SAT or ACT scores; and financial aid, such as Pell and federal grant aid and institutional grant programs. Results suggest that receiving Pell and federal grant aid and institutional grant-in-aid consistently and significantly attenuated the risks of student departure. In relation to prematriculation college-level credits, AP participants were more likely
The Effects of Financial Aid on College Success of Two-Year Beginning Nontraditional Students
Research in Higher Education, 2016
This study aims to understand the role of financial aid in college success of two-year beginning nontraditional students. By applying discrete time event history models with propensity score covariate adjustment to a nationally representative sample from BPS: 04/09, this study answers research questions centering around the effects of Pell Grants, subsidized student loans and unsubsidized student loans on six-year college outcomes of nontraditional students (i.e. degree attainment, system departure, and continuous enrollment without a degree). The results of this study suggest that these nontraditional students were most likely to drop out in the third college year and that all three types of financial aid appeared effective for reducing dropout risks, but not for encouraging timely degree completion. These findings have significant implications for policy and practice including the necessity for considering the complexity of nontraditional student pathways, backgrounds and unique needs when designing and implementing financial aid policy. The findings also contribute to discussions on ways to fund nontraditional students and provide recommendations for institutions serving large populations of nontraditional students to promote persistence to graduation.
Measuring the Impact of Income and Financial Aid Offers on College Enrollment Decisions
Research in Higher Education, 1999
This study analyzes the impact of demographic,socioeconomic, and financial factors on the enrollmentbehavior of accepted college applicants. The receipt offinancial aid had a positive impact on the enrollment decisions of accepted applicants. For every$1,000 increase in the amount of aid offered, theprobability of enrollment increased between 1.1% and2.5%. Grants and loans had the expected positive impact on enrollment, but work
Research in Higher Education, 1985
LISREL, a more versatile technique than traditional path analysis, was employed to account for 42% of the variance in the persistence of 343 new freshman financial aid recipients at a major urban university. Unlike recent persistence models, the specific model developed here highlights the impact of student finances-in particular, the amount of assistance from the programs of federal campus-based aid--on the persistence of freshmen with high financial need. The results indicate that financial need, student residency status, and noncampus-based loans and grants have direct effects on new freshman persistence regardless of the type or amount of campus-based aid awarded. The direct effect of each federal campus-based program on persistence was significant and positive. Implications for administrators and persistence researchers are discussed.
Helping or Hindering? The Effects of Loans on Community College Student Persistence
Research in Higher Education, 2014
ABSTRACT More community college students are taking out loans than ever before and their median debt levels are increasing. This trend is disconcerting because community college borrowers are overrepresented among loan defaulters and those who dropout without having earned a degree. While not without criticism, a growing number of community colleges are choosing not to participate in the federal student loan programs, citing a desire to protect their students from future financial hardships. This study used data from the Beginning Postsecondary Student (BPS:04/09) survey and propensity score matching techniques to examine the effects of loans on persistence for students enrolled in associate’s degree programs. Results indicated that borrowing during the 1st year had a positive effect on persistence at the end of year one, but had a negative effect on persistence measured three and 6 years after initial enrollment. As community college students assess their prospects for degree completion and the return on their financial investment in higher education, we hypothesize that borrowers are more likely to become dissatisfied with their investment decision than non-borrowers and choose to dropout rather than take on additional loan debt. Findings from this study suggest the need to carefully reconsider current policies and practices regarding loan use among community college students.