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Hope for the Pell? The Impact of Merit-Aid on Needy Students

Author

Listed:
  • Larry D. Singell

    (University of Oregon Economics Department)

  • Glen R. Waddell

    (University of Oregon Economics Department)

  • Bradley R. Curs

    (University of Oregon Economics Department (Student))

Abstract

Prior empirical evidence finds that merit-aid programs such as the Georgia Hope Scholarship yield large and significant enrollment effects, whereas need-based aid programs such as the Pell Grant yield modest and often insignificant enrollment effects. This paper uses unpublished panel data on the number and level of Pell awards at Southern universities along with detailed institutional data from the National Center of Educational Statistics to examine whether the Georgia Hope Scholarship improved the college access of needy students relative to other Southern states. Fixed-effect analyses show that large increases in merit aid improve college access of needy students and leverage Hope Scholarship funds with greater federal Pell assistance. Whereas most institution-specific increases in both Pell enrollment and funding are found for two-year and less selective, four-year institutions, the results also suggest that Pell students are not crowded out of more selective schools by HopeÂ’s intent to retain the best Georgia high-school students.

Suggested Citation

  • Larry D. Singell & Glen R. Waddell & Bradley R. Curs, 2004. "Hope for the Pell? The Impact of Merit-Aid on Needy Students," University of Oregon Economics Department Working Papers 2004-5, University of Oregon Economics Department.
    • Handle: RePEc:ore:uoecwp:2004-5
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    More about this item

    Keywords

    Pell; Hope Scholarship; College Access; Financial Aid;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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