Literature Review #2

Visual:  

Table 4

Effects of the Wisconsin Grant on financial aid and attainment, by EFC group.

Dependent variable RD effect

(Standard error)

Zero EFC Middle EFC Difference

First stage effects on grant aid at WTCS

Awarded Wisconsin Grant (%) 80.21⁎⁎⁎ 84.23⁎⁎⁎ −4.02⁎⁎⁎

(0.38) (0.49) (0.62)

Awarded Wisconsin Grant ($) 1127.90⁎⁎⁎ 868.15⁎⁎⁎ 259.75⁎⁎⁎

(1.37) (2.62) (2.96)

Paid Wisconsin Grant over three years ($) 361.97⁎⁎⁎ 357.73⁎⁎⁎ 4.24

(10.03) (12.02) (15.67)

Reduced-form effects at WTCS (%)

Enrolled 1.03 1.07 −0.04

(0.71) (1.00) (1.23)

Retained the following year 0.07 1.78⁎ −1.71

(0.70) (1.05) (1.26)

Transfer to UW within three years −0.08 −0.58 0.50

(0.34) (0.62) (0.70)

Degree within three years 1.51⁎⁎ −0.25 1.76

(0.60) (0.99) (1.16)

Degree among continuing students 2.58⁎⁎ −0.69 3.27⁎

(1.11) (1.52) (1.88)

Three-year effects at WTCS, per $1000 received

Degree (%) 4.18⁎⁎ −0.69 4.87

(1.63) (2.77) (3.21)

Degree among continuing students (%) 6.08⁎⁎ −1.88 7.97

(2.60) (4.13) (4.88)



Summary: Pell grant program in Wisconsin had positive effects on low income students retention rates.

Author: Drew M. Anderson is an economist at the RAND Corporation and a professor at the Pardee RAND Graduate School. He studies the economics of education and public policies to alleviate poverty. 

Quotes: "Overall, the results indicate that theWisconsin Grant had positive effects on technical college attainment. The grant supported degree completion, particularly among students who had been enrolled for at least a year. The positive effects were strongest among the lowest-income students. These general conclusions are supported in several robustness checks." (Anderson 2). 

"This study shows that marginal improvements to aid for the poorest students can raise graduation rates now, while policy continues to develop on larger issues of affordability, student supports, and aid simplification (Congressional Budget Office, 2013). To design and implement improvements, states need better information for decision making." (Anderson 9).

" As the federal government simplifies the FAFSA or increases Pell Grant generosity, more students may apply for aid and automatically qualify for more resources from states (Federal Student Aid, 2019). Protecting funding for the lowest-income students appears to be a cost-effective strategy for the long-term health of the state budget and the educational attainment of state residents. Appendix A. Alternative assignment variables The data used for this study include other discontinuities in public need-based aid. (Anderson 9). 

Value: provides proper solutions for government to entail in serving the lower or less affluent students. 

Key words: Grant - form of financial assistance given to students by government

                   EFC- Expected Family Contribution


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