NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study

David M. Linsenmeier, Harvey S. Rosen, Cecilia Elena Rouse

NBER Working Paper No. 9228*
Issued in September 2002
NBER Program(s):   CH    LS    PE    ED

We study the effects of a change in financial aid policy introduced by a Northeastern university in 1998. Prior to that time, the university's financial aid packages for low-income students consisted of grants, loans, and campus jobs. After the change, the entire loan portion of the package for low-income students was replaced with grants. We find the program increased the likelihood of matriculation by low-income students by about 3 percentage points, although the effect is not statistically significant. The effect among low-income minority students was between 8 and 10 percentage points and statistically significant at the 10 percent level.

*Published: Linsenmeier, David, Harvey S. Rosen and Cecilia Rouse. "Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study." Review of Economics and Statistics (February 2006).

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