Need-Based Financial Aid and College Persistence Experimental Evidence from Wisconsin
61 Pages Posted: 17 Jul 2011 Last revised: 15 Oct 2012
Date Written: October 10, 2012
We examine the impacts of a private need-based college financial aid program distributing grants at random among first-year Pell Grant recipients at thirteen public Wisconsin universities. The Wisconsin Scholars Grant of $3,500 per year required full-time attendance. Estimates based on four cohorts of students suggest that offering the grant increased completion of a full-time credit load and rates of re-enrollment for a second year of college. An increase of $1,000 in total financial aid received during a student’s first year of college was associated with a 2.8 to 4.1 percentage point increase in rates of enrollment for the second year.
Keywords: financial aid, college attainment
JEL Classification: C93, D03, H24, I23
Suggested Citation: Suggested Citation