Working Paper: NBER ID: w29864
Authors: Elizabeth Burland; Susan Dynarski; Katherine Michelmore; Stephanie Owen; Shwetha Raghuraman
Abstract: Proposed “free college” policies vary widely in design. The simplest set tuition to zero for everyone. More targeted approaches limit free tuition to those who demonstrate need through an application process. We experimentally test the effects of these two models on the schooling decisions of low-income students. An unconditional free tuition offer from a large public university substantially increases application and enrollment rates. A free tuition offer contingent on proof of need has a much smaller effect on application and none on enrollment. These results are consistent with students placing a high value on financial certainty when making schooling decisions.
Keywords: free tuition; college enrollment; low-income students; financial aid; randomized controlled trial
JEL Codes: I0; I21; I22; I24; I28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| unconditional free tuition offer (hail treatment) (I22) | application rates (C88) |
| conditional free tuition offer (go blue encouragement) (I24) | application rates (C88) |
| unconditional free tuition offer (hail treatment) (I22) | enrollment rates (I24) |
| conditional free tuition offer (go blue encouragement) (I24) | enrollment rates (I24) |