Chapter

How Financial Aid Affects Persistence

Eric Bettinger

in College Choices

Published by University of Chicago Press

Published in print October 2004 | ISBN: 9780226355351
Published online February 2013 | e-ISBN: 9780226355375 | DOI: http://dx.doi.org/10.7208/chicago/9780226355375.003.0006
How Financial Aid Affects Persistence

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The Pell Grant program is the largest means-tested financial assistance available to postsecondary students across the United States. Students from all types of degree granting postsecondary institutions can apply for Pell Grants. Yet despite this continued expansion of the Pell Grant, researchers have only limited evidence on the causal effects of these grants. Most Pell Grant-related research focuses on the effects of Pell Grants on enrollment decisions, specifically focusing on initial enrollment and choice among colleges. However, there is surprisingly little research measuring the causal effect of Pell Grants on student outcomes in college. Regardless of whether Pell Grants affect initial enrollment patterns, they may independently affect student outcomes. Using unique student data from Ohio, this chapter explores the causal relationship between need-based aid and student retention.

Keywords: Pell Grant; financial assistance; college enrollment; student outcomes; college; need-based aid; student retention; Ohio

Chapter.  13297 words.  Illustrated.

Subjects: Higher and Further Education

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