Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study

David Linsenmeier, Harvey Rosen and Cecilia Rouse
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David Linsenmeier: Princeton University
Harvey Rosen: Princeton University and NBER
Cecilia Rouse: Princeton University and NBER

No 838, Working Papers from Princeton University, Department of Economics, Industrial Relations Section.

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.

Keywords: financial aid; grants; loans; jobs (search for similar items in EconPapers)
JEL-codes: P27 P28 (search for similar items in EconPapers)
Date: 2001-11
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Citations: View citations in EconPapers (2)

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