The Impact of Financial Aid on Enrollment and Completion at a Large Public University
Background: Students have increasingly utilized financial aid as the rising cost of college in recent decades has far outpaced increases in family income. However, equity gaps still exist: students with financial need and Black and Hispanic students are less likely to both enroll in and complete college than their higher income and White peers. Purpose: The purpose of this three-study work was to examine the relationship between financial aid—in particular, grant aid—and the access to and completion of college for students with financial need. I also explored how this relationship may vary by a student’s race/ethnicity. Methods: These quantitative studies were conducted with data from first-time in college students at one large, public university. In the first study, I utilized multinomial logistic regression to investigate the impact of aid on accepted students’ decisions to enroll. In the second study, I utilized event history analysis to investigate the impact of aid on enrolled students’ timely degree completion. In the third study, I utilized regression discontinuity to investigate the impact of a loan-reducing financial aid program on accepted students’ decisions to enroll. Results: Results of the first study showed that there were specific ratios of gift aid to financial need that were positively associated with enrollment and the thresholds varied based on financial need and race/ethnicity. The influence was stronger as the ratios increased. Results of the second study showed that gift aid ratio was a positive predictor of six-year graduation in isolation, but not with demographic and academic covariates. There was variation by race/ethnicity and financial need, with the strongest impacts for Black students and students with moderate financial need. Results from the third study showed that the loan-reducing program had a positive effect on enrollment for students with financial need, and particularly Hispanic students. This effect only held for cohorts receiving a message confirming their program eligibility. Conclusion: These studies illustrate the salience of the type of financial aid and a student’s financial need when structuring financial aid packages that can increase the enrollment and degree completion of students from historically underrepresented populations.
college, financial aid, access, persistence, completion, underrepresented students
Networked Digital Library of Theses and Dissertations