Working Paper: NBER ID: w9228
Authors: David M. Linsenmeier; Harvey S. Rosen; Cecilia Elena Rouse
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 between 8 and 10 percentage points and statistically significant at the 10 percent level.
Keywords: financial aid; college enrollment; econometrics; low-income students
JEL Codes: I20
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| financial aid policy change (I22) | likelihood of matriculation (C52) |
| conversion of loans to grants (H81) | likelihood of matriculation (C52) |
| conversion of loans to grants (H81) | likelihood of matriculation for low-income minority students (I24) |
| financial aid policy change (I22) | overall matriculation rate of low-income admits (I24) |