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

53 Pages Posted: 19 Sep 2002 Last revised: 30 Oct 2010

See all articles by David M. Linsenmeier

David M. Linsenmeier

Princeton University - Department of Economics

Harvey S. Rosen

Princeton University - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

Cecilia E. Rouse

Princeton University - Industrial Relations Section; National Bureau of Economic Research (NBER)

Date Written: September 2002

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.

Suggested Citation

Linsenmeier, David M. and Rosen, Harvey S. and Rouse, Cecilia E., Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study (September 2002). NBER Working Paper No. w9228. Available at SSRN: https://ssrn.com/abstract=332272

David M. Linsenmeier

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

Harvey S. Rosen (Contact Author)

Princeton University - Department of Economics ( email )

001 Fisher Hall
Princeton, NJ 08544
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Cecilia E. Rouse

Princeton University - Industrial Relations Section ( email )

Princeton, NJ 08544-2098
United States
609-258-4042 (Phone)
609-258-2907 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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