Does student aid make a degree more likely? Evidence of the permanence scholarship program from survival models

Abstract

The Permanence Scholarship Program (PSP) is one of the main Brazilian student assistance policies, aiming to prevent low-income students from dropping out of higher education, by providing them with financial aid. This article analyzes the effects of PSP for students from private higher education institutions on the time of completion and rate of degree obtention. Survival analysis associated with propensity score matching was used, based on data from the higher education census between 2010 and 2017. Students included in the program, from the 4th year onwards, are at lower risk of evasion, have greater probability of graduation, and complete the studies in less time than those not in the program, even if it does not happen within the regulatory deadline. Academic scholarship holders, older and female students are more likely to complete the course. Therefore, the PSP fulfills its role in reducing dropout and time to graduation.