Blog Post - Literature Review #5






Drew M. Anderson | RAND



Author: Drew Anderson

Citation: “When Financial Aid Is Scarce: The Challenge of Allocating College Aid Where It Is Needed Most.” Journal of Public Economics, vol. 190, Elsevier B.V, 2020, p. 104253–, doi:10.1016/j.jpubeco.2020.104253. https://bit.ly/388bDPj https://www-sciencedirect-com.proxy.libraries.rutgers.edu/science/article/pii/S0047272720301171


Summary: Discusses options for college to allocate aid properly. 

FAFSA- FEderal student aid

The point estimates for increases in enrollment were near one percentage point increases in both EFC groups, from a baseline of 55% enrollment in the zero EFC group and 64% in the middle EFC group. 1

There is no way for students, schools, or the state to know precisely when the Wisconsin Grant cutoff date will be set. By the time the cutoff date is chosen, it is typically about two weeks in the past, making it impossible for applicants to retime filing in response. The date is not made public, other than through HEAB's board meeting documents posted online months later.8 Therefore the cutoff creates comparison groups of students who are otherwise similar but who receive different aid offers. 2

There was suggestive evidence that a Wisconsin Grant offer increased enrollment and retention, but the effect estimates were not statistically significant. Fig. 4 shows enrollment by filing date, without clear evidence of a break at the cutoff. The point estimates for increases in enrollment were near one percentage point increases in both EFC groups, from a baseline of 55% enrollment in the zero EFC group and 64% in the middle EFC group.


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