- Oded Gurantz
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The absence of federal support leaves undocumented students reliant on state policies to financially support their postsecondary education. We descriptively examine the postsecondary trajectories of tens of thousands of undocumented students newly eligible for California’s state aid program, using detailed application data to compare them to similar peers. In this context, undocumented students who apply and are eligible for the program use grant aid to attend college at rates similar to their peers. Undocumented students remain more likely to enroll in a community college at the expense of attending a broad access four-year college and have higher exit rates from two-year colleges. Yet undocumented students are equally likely to attend the more selective University of California system, and across four-year public colleges have persistence rates similar to their peers, showing that those who do attend four-year colleges perform well.
This paper examines how financial aid reform based on postsecondary institutional performance impacts student choice. Federal and state regulations often reflect concerns about the private, for-profit sector's poor employment outcomes and high loan defaults, despite the sector's possible theoretical advantages. We use student level data to examine how eliminating public subsidies to attend low-performing for-profit institutions impacts students' college enrollment and completion behavior. Beginning in 2011, California tightened eligibility standards for their state aid program, effectively eliminating most for-profit eligibility. Linking data on aid application to administrative payment and postsecondary enrollment records, this paper utilizes a differences-in-differences strategy to investigate students' enrollment and degree completion responses to changes in subsidies. We find that restricting the use of the Cal Grant at for-profit institutions resulted in significant state savings but led to relatively small changes in students' postsecondary trajectories. For older, non-traditional students we find no impact on enrollment or degree completion outcomes. Similarly, for high school graduates, we find that for-profit enrollment remains strong. Unlike the older, non-traditional students, however, there is some evidence of declines in for-profit degree completion and increased enrollment at community colleges among the high school graduates, but these results are fairly small and sensitive to empirical specification. Overall, our results suggest that both traditional and non-traditional students have relatively inelastic preferences for for-profit colleges under aid-restricting policies.
We replicate and extend prior work on Florida’s Bright Futures merit aid scholarship to consider its effect on college enrollment and degree completion. We estimate causal impacts using a regression discontinuity design to exploit SAT thresholds that strongly determine eligibility. We find no positive impacts on attendance or attainment, and instrumental variable results generally reject estimates as small as 1-2 percentage points. Across subgroups, we do find that eligibility slightly reduces six-year associate degree attainment for lower-SES students and may induce small enrollment shifts among Hispanic and White students. Our findings of these minimal-at-best impacts contrast those of prior works, attributable in part to methodological improvements and more robust data, and further underscore the importance of study replication. (JEL: H75, I21, I22, I23, I28)
COVID has led colleges to brace for potential enrollment declines in the Fall, which would devastate budgets and potentially decrease the likelihood a student ever earns a degree. We take an early look at California’s FAFSA applications up through mid-June, to anticipate how students may be responding to this crisis. We find that COVID did not affect most of California’s “traditional” high school graduates due to an early deadline for financial aid, which exists in a number of states. From early March to mid-June, FAFSA applications among freshmen declined 18%, relative to prior years. Although there were initial declines in applications among more experienced students, these quickly rebounded and are now 9% higher relative to prior years. The largest FAFSA increases occurred in counties that saw the most dramatic increases in Unemployment Insurance claims.
Younger siblings take more advanced high school course end of year exams when their older siblings perform better in those same exams. Using a regression discontinuity and data from millions of siblings who take Advanced Placement (AP) exams, we show that younger siblings with older siblings who marginally “pass” an AP exam are more likely to take at least one AP exam, increase the total number of AP exams, and are more likely to take the same exam as their sibling. The largest impacts are found among sisters, but we do not see differential effects in coursework where females are underrepresented.
Up to three-fourths of college students can be classified as “non-traditional”, yet whether typical policy interventions improves their education and labor market outcomes is understudied. I use a regression discontinuity design to estimate the impacts of a state financial aid program aimed towards non-traditional students. Eligibility has no impacts on degree completion for students intending to enroll in community colleges or four-year colleges but increases bachelor’s degrees for students interested in large, for-profit colleges by four percentage points. I find no impacts on employment or earnings for all applicants. This research highlights challenges in promoting human capital investment for adults.
We examine whether virtual advising – college counseling using technology to communicate remotely – increases postsecondary enrollment in selective colleges. We test this approach using a sample of approximately 16,000 high-achieving, low- and middle-income students identified by the College Board and randomly assigned to receive virtual advising from the College Advising Corps. The offer of virtual advising had no impact on overall college enrollment, but increased enrollment in high graduation rate colleges by 2.7 percentage points (5%), with instrumental variable impacts on treated students of 6.1 percentage points. We also find that non-white students who were randomly assigned to a nonwhite adviser exhibited stronger treatment effects.
This paper uses Advanced Placement (AP) exams to examine how receiving college credit in high school alters students’ subsequent human capital investment. Using data from one large state, I link high school students to postsecondary transcripts from in-state, public institutions and estimate causal impacts using a regression discontinuity that compares students with essentially identical AP performance but who receive different offers of college credit. I find that female students who earn credit from STEM exams take higher-level STEM courses, significantly increasing their depth of study, with no observed impacts for males. As a result, the male-female gap in STEM courses taken shrinks by roughly one-third to two-thirds, depending on the outcome studied. Earning non-STEM AP credit increases overall coursework in non-STEM courses and increases the breadth of study across departments. Early credit policies help assist colleges to produce graduates whose skills aligns with commonly cited social or economic priorities, such as developing STEM graduates with stronger skills, particularly among traditionally underrepresented groups.
The College Board sought to reduce barriers in the college application process by minimizing information aggregation costs, encouraging a broad application portfolio, and providing an impetus to start the search process. Some students were offered additional encouragements, such as text message reminders or college application fee waivers. In a randomized control trial with 785,000 low- and middle-income students in the top 50% of the PSAT and SAT distributions, we find no changes in college enrollment patterns, with the exception of a 0.02σ increase in college quality measures for African-American and Hispanic students.
Only half of SAT-takers retake the exam, with even lower retake rates among low income and underrepresented minority (URM) students. We exploit discontinuous jumps in retake probabilities at multiples of 100, driven by left-digit bias, to estimate retaking’s causal effects. Retaking substantially improves SAT scores and increases four-year college enrollment rates, particularly for low income and URM students. Eliminating disparities in retake rates could close up to 10 percent of the income-based gap and up to seven percent of the race-based gap in four-year college enrollment rates of high school graduates.