Financial aid packages and college enrollment decisions: An econometric case study

David M. Linsenmeier, Harvey S. Rosen, Cecilia Elena Rouse

Research output: Contribution to journalArticlepeer-review

58 Scopus citations

Abstract

We study the effects of a change in financial aid policy introduced by an anonymous university in 1998. Prior to that time, the university's financial aid packages for low-income students consisted of grants, loans, and campus jobs. After the change, the entire loan portion of the package for low-income students was replaced with grants. We find the program increased the likelihood of matriculation by low-income students by approximately 3 percentage points, although the effect is not statistically significant. The effect among low-income minority students was between 8 and 10 percentage points and statistically significant at the 10% level.

Original languageEnglish (US)
Pages (from-to)126-145
Number of pages20
JournalReview of Economics and Statistics
Volume88
Issue number1
DOIs
StatePublished - Feb 2006

All Science Journal Classification (ASJC) codes

  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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