Abstract This study evaluates the impact of financial aid on pupils’ academic achievement in French-speaking sub-Saharan African countries, with a focus on mathematics and reading outcomes. Persistent disparities in educational performance, particularly among disadvantaged students and schools, underscore the need to understand how financial support can influence learning. The analysis applies propensity score matching to compare pupils in schools receiving local community support with those in schools without such support. This method ensures that observed differences in outcomes are attributable to financial aid rather than pre-existing differences between students or schools. The findings indicate that financial aid significantly enhances learning outcomes. Beneficiaries of such support achieve higher scores in both mathematics and reading. The effects vary by gender and type of school: girls tend to benefit more in mathematics, while boys show greater gains in reading; private and community schools experience larger improvements compared with public schools. These results suggest that targeted financial support can meaningfully improve educational achievement, particularly when adapted to the specific needs of schools and students. The study provides evidence for policymakers on effective resource allocation to reduce achievement gaps and promote equitable access to quality education. By highlighting the differential effects of financial aid, the research contributes to strategies aimed at improving learning outcomes and addressing educational inequalities across sub-Saharan Africa.

Purpose This study aims to investigate the effects of financial aid via zakat and the perceived learning–teaching process on the educational outcomes of undergraduate students in Malaysia. Design/methodology/approach Approximately 350 zakat recipients (mustahiq) were selected to evaluate their educational outcomes, measured by the learning process, student readiness and academic performance. Partial least squares (PLS) regression was used to test the selected samples and approve the hypothesis. Findings In accordance with the underlying theories, the results of the PLS regression highlighted several major findings: financial aid, through zakat indeed increases positive effects in the learning process; zakat aid is found to increase student readiness in the education process and academic performance of undergraduate students; and student readiness in the education process plays a significant role in mediating the effect between zakat aid and the learning process and academic performance. This study also demonstrates that the learning process is equally important for student readiness and academic performance. Originality/value Importantly, this study contributes novelty by exploring the impact of zakat in education, specifically the higher education sector, because previous studies have enormously discussed zakat as a poverty-mitigating topic. The findings of this study are essential for zakat stakeholders to understand the contribution of zakat to developing human capital, particularly post-COVID-19 in Malaysia.

The effects of financial aid on graduation and labor market outcomes: New evidence from matched education-labor data

The issue of equity in higher education has gained prominence as it has become increasingly clear that opportunities for higher education are not equitably distributed among different student groups. This paper provides a thorough understanding of the key components of equitable access and success in higher education, primarily in the context of the United States. It also seeks to explore the effectiveness of affirmative action, financial aid and scholarship systems, successful initiatives, cultural and sociological attitudes, and institutional structures and services in promoting equitable access and success in higher education. The paper uses a systematic review methodology to analyze academic and policy documents, program evaluations, and case studies. The analysis includes a synthesis of key findings and themes from the literature review, an examination of successful initiatives and programs in higher education institutions in the United States. The findings suggest that while affirmative action and financial aid programs have been successful in promoting equitable access and success in higher education, further efforts are needed to address cultural and societal attitudes that perpetuate inequities in higher education. Recommendations for future research include the long-term effects of financial aid and cultural barriers to building a more equitable education.

Abstract We document that the employment effects of financial aid to US states during the Great Recession were strongly unevenly distributed across sectors, the construction sector being the main beneficiary. State fiscal relief not only preserved a substantial number of jobs but it also fostered employment most strongly in the sectors hit hardest by the recession. Exploiting across-state differences, we conclude that the sectoral employment effects of state fiscal relief reflect the typical spending patterns of state and local governments, who usually spend large shares of their discretionary expenditures on construction.

ABSTRACT Despite the robust literature on the effects of financial aid, the effects of financial aid loss remain largely understudied. We employ a regression discontinuity design, leveraging a minimum GPA scholarship renewal threshold, to examine the effect of losing state merit aid eligibility on college student stop-out, transfer, and bachelor’s degree completion. We estimate the effects of GPA-based eligibility loss for low- and higher-income students, Black and White students, and the interactions of the two separately. Using longitudinal state administrative data from academic years 2011 to 2014 on four cohorts of students attending public four-year colleges, we find evidence that the effects of eligibility loss at the first renewal checkpoint differ among the subgroups of interest. Losing eligibility for a state merit aid scholarship at the first renewal checkpoint leads to increased stop-out among higher-income White students and increased transfer to a community college among low-income Black students. State merit aid loss has no statistically significant effect on on-time bachelor’s degree completion but causes a decrease in the probability of 150% time bachelor’s degree completion for Black students. We close with implications for policy and research.

The Effects of Financial Aid on Graduation and Labor Market Outcomes: New Evidence from Matched Education-Labor Data

Many veterans rely on the Supplemental Nutrition Assistance Program (SNAP). We study the change in the veterans’ reliance on SNAP in response to the GI Bill, the veterans’ financial aid for higher education. Using the unanticipated increase in educational benefits due to the Post-9/11 GI Bill and employing a difference-in-differences approach, we estimate that the benefit increase lowered veteran SNAP participation by about 28%, the effect being larger among new veterans. These findings reflect changes in the veterans’ choices that are attributable to wealth effects, SNAP eligibility criteria, and human capital accumulation. SNAP eligibility typically expires when the veteran attends college, and a larger educational benefit increases the veterans’ probability of college attendance. Furthermore, a college degree increases future earnings, which reduces the veterans’ SNAP reliance in the longer run. Quantifying these relationships provides insights into how financial aid for education in general improves veterans’ economic well-being and may help break some veterans’ dependence on SNAP and similar welfare programs.

When financial aid is scarce: The challenge of allocating college aid where it is needed most

We estimate attainment effects of financial aid at a large community college. Using variation from a field experiment that altered how the college presented loans and a discontinuity in the Pell Grant formula, we separately identify the effects of grant aid and loans on short-run attainment. Although increases in Pell Grant aid cause students to reduce their borrowing, our experiment allows us to partial out the effect of any borrowing response on attainment. Both grants and loans significantly increase credits completed and grades.

Despite concerted efforts to increase participation in advanced placement (AP) and dual credit (DC) programs, their efficacy remains unexplored. Drawing upon St. John’s model as the conceptual framework, this study employed a discrete-time event history analysis to examine the interplay between forms of financial aid and persistence toward degree completion for students participating in DC and AP programs and enrolling in a large, multicampus, Midwestern, U.S. University. First-time, first-year baccalaureate degree-seeking students who began studies in Fall 2012 were tracked for 4 years. The findings suggest that many factors are significantly related to college success, including student demographics such as race (especially Latino identity), first-generation status, housing status, socioeconomic status, and dependency status; high school performance, AP/DC participation, and SAT or ACT scores; and financial aid, such as Pell and federal grant aid and institutional grant programs. Results suggest that receiving Pell and federal grant aid and institutional grant-in-aid consistently and significantly attenuated the risks of student departure. In relation to prematriculation college-level credits, AP participants were more likely to receive institutional grant programs, whereas DC participants were more likely to have student loans. These findings have implications regarding the efficacy of DC/AP programs in regard to their interplay with financial aid systems in affecting persistence outcomes.

The effects of financial aid and returns information in selective and less selective schools: Experimental evidence from Chile

<p class="apa">The purpose of this study was to examine the effects of financial aid policies on student persistence between the first and second year at a private four-year postsecondary institution in Taiwan. A two-phase sequential research design was employed with priority was given to the quantitative data–structural equation modeling (SEM). While the conceptual framework of this study was drawn from multiple research antecedents in relation to student persistence the major perspective guiding it was based on St. John’s (1992) analysis of the research. Overall, the greatest effects on persistence were the measures of high school academic performance, followed by campus work, academic integration, social aspiration for attending college, financial aid, and parental supports, while neither parental educational attainments, faculty-student interactions, the practical value for future employment, nor peer relations were associated with students’ decision to remain enrolled in college, results which merit further investigation. In sum, this study provides a necessary beginning step, more institutional research is needed in Taiwan to improve policy makers’ and institutional researchers’ understanding of the complex interplay between student financial aid and college experiences in students’ decisions to persist in college as well as to develop a longitudinal database to identify ways to increase student success.</p>

This study aims to understand the role of financial aid in college success of two-year beginning nontraditional students. By applying discrete time event history models with propensity score covariate adjustment to a nationally representative sample from BPS: 04/09, this study answers research questions centering around the effects of Pell Grants, subsidized student loans and unsubsidized student loans on six-year college outcomes of nontraditional students (i.e. degree attainment, system departure, and continuous enrollment without a degree). The results of this study suggest that these nontraditional students were most likely to drop out in the third college year and that all three types of financial aid appeared effective for reducing dropout risks, but not for encouraging timely degree completion. These findings have significant implications for policy and practice including the necessity for considering the complexity of nontraditional student pathways, backgrounds and unique needs when designing and implementing financial aid policy. The findings also contribute to discussions on ways to fund nontraditional students and provide recommendations for institutions serving large populations of nontraditional students to promote persistence to graduation.

The Effects of Financial Aid and Returns Information in Selective and Less Selective Schools: Experimental Evidence from Chile

Away, but not too far from home. The effects of financial aid on university enrolment decisions

Financial aid and student success are interrelated and essential components of strategic enrollment management. From an economic perspective, by reducing the price students pay, financial aid affects student demand for education. However, financial aid also has nonmonetary effects. For example, students receiving institutional scholarships may feel a sense of loyalty to and support from that institution, affecting their likelihood of remaining enrolled. Certainly, prior research (e.g., Dynarski 2008; St. John 1992) has shown that financial aid can have a positive effect on student persistence and graduation. However, whether pricing has a different relationship to graduation for men compared to women remains under researched. Yet, since 2004–2005, women have represented the majority of degree recipients at the associate's, bachelor's, master's, and doctoral degree levels, and their proportions are expected to increase over the next 10 years (Digest of Education Statistics 2013). This study seeks to contribute to the literature in strategic enrollment management on pricing by focusing on gender and degree attainment. Distinct from prior studies (i.e., Dynarski 2008), we focus on multiple forms of aid (e.g., grants, loans). Specifically, this study asks, “To what extent does gender moderate the relationship between financial aid and degree completion?” We begin with review of the relevant literature on gender, pricing, and finances in postsecondary education.

The purpose of this quantitative ex post facto study was to assess the extent to which the amount and type of financial aid predict year-to-year persistence and degree-attainment among African American, Hispanic, and low-income community college students. Most of the current research focused on these issues with-in four-year institutions; however, persistence and degree-attainment within a community college setting has not been fully examined using national data. This study was guided by the workable persistence model of Edward St. John (1992) who examined the impact of social background, academic background, college experiences and financial factors. For the purpose of this current study, this model was used to determine if there is a relationship between the type and amount of financial aid received and persistence and degree-attainment among African American, Hispanic and low-income community college students. The independent variables consisted of the type of financial aid received and the amount of financial aid received. The dependent variables were student persistence and rate of degree-attainment. Longitudinal data provided by the National Center for Education Statistics (NCES), Beginning Postsecondary Student Survey (BPS) were analyzed. The data-analysis consisted of descriptive statistics and logistic regression. The two federal programs examined were the Pell Grant and Stafford Loan programs. The state program examined was merit-based aid. Findings confirmed that Pell Grant, Stafford Subsidized Loans, and state merit-based funding were most often best predictors of persistence and degree-attainment by the targeted populations. The findings of this study could be used to inform a review of policies and by federal and state legislation in order to improve financial aid programs and ensure adequate financial support to underrepresented students (McGhee, 2011).As administrators become aware of which forms of financial aid were most predictive of persistence and degree-attainment in their own institutions, efforts can be made to award student funding in ways that improve persistence and degree-attainment.

College departure involves multiple mobility patterns that include lateral transfer (from a four-year to another four-year institution), reverse transfer (from a four-year to a two-year institution), and stop out (taking time out of higher education altogether). This study addresses how financial aid influences the likelihood of such mobility patterns for minority and low-income students. Utilizing data from the Education Longitudinal Survey of 2002, this study found that the effects of financial aid on multiple mobility patterns are similar across students of different income groups. By contrast, non-white students benefit significantly from financial aid, particularly from low-burden aid options (e.g., tuition waivers and grants) in lowering the probability of lateral transfer. No financial aid has a significant effect on changing the likelihood that students reverse transfer or stop out.

There is limited and uncertain evidence on how financial aid affects dropout from or the completion of higher education. A large-scale reform of the Danish student grant and loan system that among others increased student grants by up to $3,000 per year (57 %) was used to identify causal effects of financial aid on outcomes for university students. Estimates were obtained from year-of-study specific models for students observed just before and after the reform, controlling for student, parental and labour-market characteristics. The estimates indicate that the reform lowered dropout rates, but had no overall effect on completion rates, although with substantial variation across population subgroups. The impact on dropout rates was found to be higher for students from a lower socio-economic background and the impact on completion rates was found to be higher three years after the designated study time to completion. The reform seems to have performed as intended by increasing the take-up of student grants and lowering work hours while studying.