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The Role of State Policy in Promoting College Affordability

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  • Jennifer A. Delaney

Abstract

This article considers trends in state policies that determine college affordability, including trends in state general appropriations, institutional tuition and fees, and state student financial aid. Taken together, these trends demonstrate erosion in college affordability. This article also examines one recent federal policy intervention that has shaped state policy for higher education affordability, the American Recovery and Reinvestment Act of 2009 (ARRA). My analysis of ARRA shows that the “maintenance of effort†provision in the law was effective, as there was no drop in state general appropriations for higher education (including federal ARRA funds) following implementation. However, in a related analysis, I show that ARRA is negatively associated with state spending on student financial aid. Collectively, state policy trends and the ARRA analyses underscore the need for improved state policy in promoting college affordability, as an affordable college education is out of reach for an increasing proportion of students.

Suggested Citation

  • Jennifer A. Delaney, 2014. "The Role of State Policy in Promoting College Affordability," The ANNALS of the American Academy of Political and Social Science, , vol. 655(1), pages 56-78, September.
    • Handle: RePEc:sae:anname:v:655:y:2014:i:1:p:56-78
    DOI: 10.1177/0002716214535898
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    References listed on IDEAS

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    2. Susan Dynarski, 2004. "The New Merit Aid," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 63-100, National Bureau of Economic Research, Inc.
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    5. Thomas S. Dee & Linda A. Jackson, 1999. "Who Loses HOPE? Attrition from Georgia’s College Scholarship Program," Southern Economic Journal, John Wiley & Sons, vol. 66(2), pages 379-390, October.
    6. 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.
    7. Christopher M. Cornwell & Kyung Hee Lee & David B. Mustard, 2005. "Student Responses to Merit Scholarship Retention Rules," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 895-917.
    8. Caroline Minter Hoxby, 2004. "Introduction to "College Choices: The Economics of Where to Go, When to Go, and How to Pay For It"," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 1-12, National Bureau of Economic Research, Inc.
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    Cited by:

    1. James Monks, 2014. "The Role of Institutional and State Aid Policies in Average Student Debt," The ANNALS of the American Academy of Political and Social Science, , vol. 655(1), pages 123-142, September.
    2. William Doyle & William Zumeta, 2014. "State-Level Responses to the Access and Completion Challenge in the New Era of Austerity," The ANNALS of the American Academy of Political and Social Science, , vol. 655(1), pages 79-98, September.
    3. Laura W. Perna & Michael W. Klein & Michael K. McLendon, 2014. "Insights and Implications for State Policy-Makers," The ANNALS of the American Academy of Political and Social Science, , vol. 655(1), pages 209-230, September.

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