Working Paper: CEPR ID: DP9699
Authors: Gabrielle Fack; Julien Grenet
Abstract: Using comprehensive administrative data on France?s single largest financial aid program, this paper provides new evidence on the impact of large-scale need-based grant programs on the college enrollment decisions, persistence and graduation rates of low-income students. We exploit sharp discontinuities in the grant eligibility formula to identify the impact of aid on student outcomes at different levels of study. We find that eligibility for an annual cash allowance of 1,500 euros increases college enrollment rates by up to 5 percentage points. Moreover, we show that need-based grants have positive effects on student persistence and degree completion
Keywords: college enrollment; degree completion; need-based grants; student persistence
JEL Codes: H52; I22; I28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Eligibility for an annual cash allowance of 1500 euros (H55) | College enrollment rates (I23) |
| Need-based grants (I24) | Student persistence (I21) |
| Need-based grants (I24) | Degree completion rates (Y40) |
| Need-based grants (I24) | Degree completion rates for prospective master's students (I23) |
| Need-based grants (I24) | Degree completion rates for students in their final undergraduate or graduate year (Y40) |