Full Citation

Title: The Incidence of Financial Aid: How Colleges Respond to Merit Scholarship Programs

Citation Type: Miscellaneous

Publication Year: 2014

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Abstract: I examine how colleges respond to the introduction of broad merit aid programs. Previous research has emphasized the impact of merit aid on enrollment, student choices, and post-matriculation outcomes. Yet much less is known about how state-implemented merit aid programs, especially those funded through lottery revenues or other semi-external revenue sources, affect colleges financial decisions. I use college financial data from the Delta Cost Project database to assess how colleges respond to merit aid programs in terms of tuition and fees, institutional grants, instructional expenditures, and student services expenditures. Results suggest that colleges do not capture state-funded merit scholarships through significant increases in published tuition prices. Instead, public and private colleges react to state-funded merit scholarships with increases in expenditures on students.

Url: http://jilleahwelch.com/pdf/Welch_CollegeResponse.pdf

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Authors: Welch, Jilleah G.

Publisher: University of Tennessee

Data Collections: IPUMS USA, IPUMS CPS

Topics: Education

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