Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program
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- halshs: halshs-00870546
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Gabrielle Fack et al., « Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program », HAL SHS (Sciences de l’Homme et de la Société), ID : 10670/1.6a8e78...
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Using comprehensive administrative data on France's single largest financial aid program, this paper provides new evidence on the impact of large-scale need-based grant programs on the college enrollment decisions, persistence and graduation rates of low-income students. We exploit sharp discontinuities in the grant eligibility formula to identify the impact of aid on student out-comes at different levels of study. We find that eligibility for an annual cash allowance of 1,500 euros increases college enrollment rates by up to 5 percent-age points. Moreover, we show that need-based grants have positive effects on student persistence and degree completion.
