The Power of Certainty: Experimental Evidence on the Effective Design of Free Tuition Programs

Elizabeth Burland, Susan Dynarski, Katherine Michelmore, Stephanie Owen and Shwetha Raghuraman

American Economic Review: Insights, 2023, vol. 5, issue 3, 293-310

Abstract: Proposed "free college" policies vary widely in design. The simplest set tuition to zero for everyone. More targeted approaches limit free tuition to those who demonstrate need through an application process. We experimentally test the effects of these two models on the schooling decisions of low-income students. An unconditional free tuition offer from a large public university substantially increases application and enrollment rates. A free tuition offer contingent on proof of need has a much smaller effect on application and none on enrollment. These results are consistent with students placing a high value on financial certainty when making schooling decisions.

JEL-codes: H52 H75 I22 I23 I28 I32 (search for similar items in EconPapers)
Date: 2023
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Working Paper: The Power of Certainty: Experimental Evidence on the Effective Design of Free Tuition Programs (2022)
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DOI: 10.1257/aeri.20220094

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