Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program

Gabrielle Fack (1) , Julien Grenet (2, 3)

1 UPF - Universitat Pompeu Fabra [Barcelona]
2 PSE - Paris-Jourdan Sciences Economiques
3 PSE - Paris School of Economics

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.

Mots clés: Need-based grants; College enrollment; Student persistence; Degree completion

Domaines: Economies et finances

Gabrielle Fack, Julien Grenet. Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program. 2013. ⟨halshs-00870546⟩