Title
Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study
Author(s)
David M. Linsenmeier David Linsenmeier (Princeton University)
Harvey S. Rosen Harvey Rosen (Princeton University and NBER)
Cecilia Elena Rouse Cecilia Rouse (Princeton University and NBER)
Abstract
We study the effects of a change in financial aid policy introduced by a Northeastern university in 1998. Prior to that time, the university s financial aid packages for low income students consisted of grants, loans, and campus jobs. After the change, the entire loan portion of the package for low-income students was replaced with grants. We find the program increased the likelihood of matriculation by low-income students by about 3 percentage points, although the effect is not statistically significant. The effect among low-income minority students was about twice that size and statistically significant at the 10 percent level.
Creation Date
2001-11
Section URL ID
IRS
Paper Number
459
URL
https://dataspace.princeton.edu/bitstream/88435/dsp01m900nt41h/1/459.pdf
File Function
Jel
P27, P28
Keyword(s)
financial aid, grants, loans, jobs
Suppress
false
Series
1