Toward the Education Nation? Revisiting the Impact of Financial Aid, College Experience, and Institutional Context on Baccalaureate Degree Attainment for Low Income Students
Toward the Education Nation? Revisiting the Impact of Financial Aid, College Experience, and Institutional Context on Baccalaureate Degree Attainment for Low Income Students
 
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Toward the Education Nation? Revisiting the Impact of Financial Aid, College Experience, and Institutional Context on Baccalaureate Degree Attainment for Low Income Students

Presented at:
AERA 2014 Annual Meeting
April 3, 2014

Ray Franke, University of Massachusetts, Boston

Abstract

Assessing financial aid-related influences for low-income students, this study finds that need-based grants from all sources increase chances to complete a degree within six years, whereas unsubsidized (federal) loans are found to drastically lower chances to obtain a degree. More specifically, federal grant aid is found to increase the chances for low-income students to graduate between 2.52% and 2.82% for every $1,000 in additional aid, the largest positive financial aid factor. Effects for state need-based grants are only marginally smaller, increasing the likelihood to graduate between 2.40% and 2.59%. For an additional $1,000 in institutional needbased grants, results show that students have a 1.31% to 1.62% higher chance to obtain a baccalaureate degree. Interestingly, merit grant aid from state or institutional sources and other/outside grants are not found significant in the estimation.

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