NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Federal and State Financial Aid During the Great Recession

Eric Bettinger, Betsy Williams


This chapter is a preliminary draft unless otherwise noted. It may not have been subjected to the formal review process of the NBER. This page will be updated as the chapter is revised.

Chapter in forthcoming NBER book How the Financial Crisis and Great Recession Affected Higher Education, Jeffrey Brown and Caroline Hoxby, editors
Conference held September 27-28, 2012
Forthcoming from University of Chicago Press

During the Great Recession, the maximum federal Pell award grew over 32 percent in three years, the fastest rate in its history. Our research examines how states' need-based financial aid policies responded to the economic downturn and this Pell program. Documenting tends in state and federal policies, we show a pattern that as many as half of the states have reduced the generosity of their financial aid programs during the Great Recession. This pattern of reducing generosity in the wake of increases in the Federal Pell Grant Program is not new, and our research shows that this potential fiscal federalism has become more common since 2000. We highlight specific policies in three states that illustrate this trend. We also use student-level data from Ohio to illustrate how students' net aid packages changed in response to the combined changes in federal and state aid policy, finding that the state policy had disproportionate effects on the students with most need.

download in pdf format
   (160 K)

email paper

This paper is available as PDF (160 K) or via email.

This paper was revised on December 19, 2013

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Users who downloaded this chapter also downloaded these:
Brown and Hoxby Introduction to "How the Great Recession Affected Higher Education"
Dynarski and Scott-Clayton w18710 Financial Aid Policy: Lessons from Research
Long The Financial Crisis and College Enrollment: How Have Students and Their Families Responded?
Brown, Dimmock, and Weisbenner The Supply of and Demand for Charitable Donations to Higher Education
Turner The Impact of the Financial Crisis on Faculty Labor Markets
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us