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The Influence of Financial Aid Systems on Student Academic Development in Higher Education in China

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  • Shuyu Qi

    (School of Higher Education, Faculty of Humanities and Social Science, Beijing University of Technology, Beijing 100124, China)

  • Qiutong Ma

    (School of Higher Education, Faculty of Humanities and Social Science, Beijing University of Technology, Beijing 100124, China)

  • Xiaohui Ji

    (Institute of Higher Education, Beijing Academy of Educational Sciences, Beijing 100036, China)

Abstract

The main purpose of this paper is to analyze the relationship between the multiple mixed financial aid systems and the academic development of college students in Chinese higher education. Under the assistance of National Student Financial Aid Center of China, this study used sample data from the questionnaire survey conducted among students in 11 colleges and universities, and used logistic regression analysis based on human capital theory and student development theory to investigate the effects of different forms of financial aid on students’ academic development in higher education. The main results of the study showed that, firstly, receiving National Scholarships, National Encouragement Scholarships, and National Student Loans were significantly and positively correlated with receiving excellent grades, but receiving National Grants and work-study positions were significantly and negatively correlated with receiving excellent grades. Secondly, receiving higher National Scholarships and work-study funding significantly increased students’ probability of receiving excellent grades, but receiving higher National Student Loans funding significantly decreased students’ probability of receiving excellent grades. Further analysis of the influence of different forms of financial support on students’ academic development revealed that receiving National Scholarships and National Encouragement Scholarships can significantly increase the probability of study exchanges between sponsored students, teachers, and classmates and of attending seminars; receiving higher National Scholarships and work-study positions can help sponsored students clarify their study goals and increase study exchanges with teachers and classmates. The results of this study showed that the students’ academic development is influenced by the National Scholarships and work-study positions. Based on the results of the empirical study, countermeasures and suggestions were proposed in terms of precise financial aid systems, allocation of financial aid resources, and work-study positions, so as to improve the impact of higher education mixed financial aid systems on college students’ academic development in China.

Suggested Citation

  • Shuyu Qi & Qiutong Ma & Xiaohui Ji, 2022. "The Influence of Financial Aid Systems on Student Academic Development in Higher Education in China," Sustainability, MDPI, vol. 14(21), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:14068-:d:956450
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    References listed on IDEAS

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    1. Rong Chen & Stephen L. DesJardins, 2010. "Investigating the Impact of Financial Aid on Student Dropout Risks: Racial and Ethnic Differences," The Journal of Higher Education, Taylor & Francis Journals, vol. 81(2), pages 179-208, March.
    2. Edwin Leuven & Hessel Oosterbeek & Bas van der Klaauw, 2010. "The Effect of Financial Rewards on Students' Achievement: Evidence from a Randomized Experiment," Journal of the European Economic Association, MIT Press, vol. 8(6), pages 1243-1265, December.
    3. David Card & Alex Solis, 2022. "Measuring the Effect of Student Loans on College Persistence," Education Finance and Policy, MIT Press, vol. 17(2), pages 335-366, Spring.
    4. Triventi, Moris, 2014. "Does working during higher education affect students’ academic progression?," Economics of Education Review, Elsevier, vol. 41(C), pages 1-13.
    5. Susan Dynarski & Judith Scott-Clayton, 2013. "Financial Aid Policy: Lessons from Research," NBER Working Papers 18710, National Bureau of Economic Research, Inc.
    6. Lauren Schudde & Judith Scott-Clayton, 2016. "Pell Grants as Performance-Based Scholarships? An Examination of Satisfactory Academic Progress Requirements in the Nation’s Largest Need-Based Aid Program," Research in Higher Education, Springer;Association for Institutional Research, vol. 57(8), pages 943-967, December.
    7. Serge Herzog, 2018. "Financial Aid and College Persistence: Do Student Loans Help or Hurt?," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(3), pages 273-301, May.
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    Cited by:

    1. Xiaohong Li & Yuxi Mu, 2024. "The Effects of Development-Oriented Aid on Student Development in Higher Education: The Mediating Effect of Psychological Capital," Sustainability, MDPI, vol. 16(13), pages 1-18, July.

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