The United States’ Higher Education Antitrust Exemption and College Enrollment

Abstract

This study examines the effect of the higher education antitrust exemption on enrollment of financial aid applicants at highly selective private colleges that implemented the exemption. The antitrust exemption, used since the 2002-03 academic year, was made permanent in May 2008 by the U.S. Congress, allowing colleges with need-blind admission policy to use common standards without discussing or comparing individual awards. Our findings suggest that the likelihood of enrollment at the colleges implementing the antitrust exemption increased compared to those that did not. Concerns about the adverse effect of the exemption on enrollment, therefore, seems to be unwarranted. Moreover, the common standards do not seem to increase college access for low income students.

Keywords: Higher Education Antitrust Exempt, Financial Aid, College Enrollment, 568 Presidents’ Group

JEL Classification: K21, I21, I28