Examining Zero Expected Family Contribution as a New Criterion for “Low Income”: Comparing the Impact on Student Persistence at Two- and Four-Year Institutions

Abstract

The designation “low income” is often assigned to students who are Federal Pell Grant eligible; however, family incomes for these recipients range from $0 to as high as $60,000 (Baum & Payea, 2011). Over 93% of all zero expected family contribution (EFC) students have a family income of $30,000 or less and constituted 67.4% of all Federal Pell Grant disbursements in 2009–2010. Given the wide range of family incomes, state need-based grant eligibility requirements, and current fiscal constraints, the purpose of this study was to compare predictors of student first- to second-year persistence, for zero and nonzero EFC students at two- and four-year institutions, as suggested by Davidson (2013). Logistic regressions showed differences between students at two- and four-year institutions as well as zero and nonzero students. Using a zero EFC as a criterion for low income could prove a valuable alternative to Federal Pell Grant eligibility for state and institutional policy makers when allocating need-based financial aid. In doing so, consideration must be given to this student population’s particular needs and factors that best foster student success.