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Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study

Author

Listed:
  • David M. Linsenmeier

    (Princeton University)

  • Harvey S. Rosen

    (Princeton University and NBER)

  • Cecilia E. Rouse

    (Princeton University and NBER)

Abstract

We study the effects of a change in financial aid policy introduced by a Northeastern 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 was replaced by grants. We find the program increased the likelihood of matriculation by low income students by three percentage points, although the effect is not statistically significant. The effect among low income minority students was about twice that size and statistically significant at the ten percent level.

Suggested Citation

  • David M. Linsenmeier & Harvey S. Rosen & Cecilia E. Rouse, 2001. "Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study," Working Papers 126, Princeton University, Department of Economics, Center for Economic Policy Studies..
    • Handle: RePEc:pri:cepsud:76
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    Cited by:

    1. Thomas J. Kane, 2003. "A Quasi-Experimental Estimate of the Impact of Financial Aid on College-Going," NBER Working Papers 9703, National Bureau of Economic Research, Inc.
    2. Thomas Kane, 2004. "Evaluating the Impact of the D.C. Tuition Assistance Grant Program," NBER Working Papers 10658, National Bureau of Economic Research, Inc.
    3. Susan Dynarski, 2002. "The Behavioral and Distributional Implications of Aid for College," American Economic Review, American Economic Association, vol. 92(2), pages 279-285, May.

    More about this item

    Keywords

    United States;

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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