Region, resources, and reason: A contextual analysis of state tuition and student aid policies

Abstract

This paper reports on an investigation of differences and similarities across the 50 states in approaches to the pricing and discounting, via student aid, of undergraduate education. To examine national patterns in tuition and aid policies, the analysis used recent state-by-state data and multivariate statistical methods. The results suggest that region, social and economic resources, and postsecondary governance arrangements each have distinctive connections to the nature of states' tuition and aid policies. Of particular interest are the results relating to high-tuition/high-aid policies at the state level, an approach termed by proponents therationalization of tuition and aid policy. Multiple regression analysis revealed rationalization to be primarily a regionally driven phenomenon concentrated in the Northeast and Midwest. Rationalization showed weaker, but still significant, connections to the states' population, personal income levels, extent of reliance on private postsecondary institutions, and governance arrangements. Implications of these findings for theory and policy are discussed.