Early Impacts of the Financial Aid Application Requirement in Texas

27 Pages Posted: 21 Jun 2024

See all articles by Sie Won Kim

Sie Won Kim

Texas Tech University - Department of Economics

Date Written: June 14, 2024

Abstract

In 2021-22, Texas implemented a policy requiring all public high school seniors to complete a financial aid application. This paper examines the impacts of the financial aid application requirement on the Free Application for Federal Student Aid (FAFSA) completion rates and college enrollment using a difference-in-differences design. First, using a sample of 47 states, I find that the requirement increases FAFSA completion rates in Texas by 11 percentage points (18.5 percent). Second, using a sample of 1,084 public high schools in Texas, I find that all schools experienced positive effects on FAFSA completion rates, ranging from 3 to 8 percentage points. However, this increase in FAFSA completion does not correspond to an increase in college enrollment, suggesting a potential need for targeted interventions in addition to the statewide requirement.

Keywords: Financial aid, FAFSA, Higher education

JEL Classification: H75, I21, I22, I23

Suggested Citation

Kim, Sie Won, Early Impacts of the Financial Aid Application Requirement in Texas (June 14, 2024). Available at SSRN: https://ssrn.com/abstract=4865800 or http://dx.doi.org/10.2139/ssrn.4865800

Sie Won Kim (Contact Author)

Texas Tech University - Department of Economics ( email )

Box 41014
Lubbock, TX 79409
United States

HOME PAGE: http://siewonkim.com/

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