The Effects Of Need-Based Aid On College Enrollment: An Analysis Of Institutions That Award College Promise Scholarships

Abstract

People that obtain a college degree or certification are more likely to have an enhanced quality of life in areas of physical, mental, and financial well-being. The College Promise program promotes college enrollment by offering need-based scholarships with hopes that all students can obtain at least a two-year degree. Several scholars have examined the pre- and post-enrollment effects of College Promise programs on a per program basis, but no nationwide study exists that examines pre- and post-enrollment of institutions that award the scholarship. To determine the enrollment effect of College Promise programs, I examine the post-effect of enrollment among the award availability categories using a differences-in-difference model. When examining years when financial aid data were collected, the highest increase in total enrollment were among institutions that granted statewide and area-specific scholarships. This type of institution increased enrollment. Schools that exclusively granted statewide scholarships also increased in comparison to pre-College Promise enrollment averages. This shows that the College Promise programs have an effect, but the program availability type is particularly relevant

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