Abstract
Objectives. This study assesses whether need‐based grants are equally conducive to the college persistence of students from various economic strata and the extent to which a redistribution of funds can narrow economic‐based inequality in college persistence.Methods. To estimate the causal effect of need‐based grants on several persistence outcomes the discontinuity created in the dollar amounts of Pell grants when the students have siblings attending college is exploited. The analyses use a nationally representative sample of students enrolled at four‐year institutions in 1995.Results. While the allocation of Pell Grants responds to students' pecuniary constraints, institutional and state grants expand the circle of recipients to more well‐off students. Yet, it is only the persistence of students from the bottom half of the income distribution that is sensitive to aid amounts. If the need‐based funds granted to affluent students had been diverted to these students, the gap in first‐year persistence would have been closed.Conclusions. For a redistribution of funds to boost degree attainment and achieve equality of educational opportunity it must be based on stricter means‐tested allocations of nonfederal funds as they are the main source of need‐based aid.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.