Is School Out for the Summer? The Impact of Year-Round Pell Grants on Academic and Employment Outcomes of Community College Students

Vivian Yuen Ting Liu ()
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Vivian Yuen Ting Liu: Community College Research Center Teachers College Columbia University New York, NY 10027

Education Finance and Policy, 2020, vol. 15, issue 2, 241-269

Abstract: Despite having been the largest source of financial aid to low-income college students in the United States, the traditional Pell Grant had one major limitation: If students enrolled in two semesters full-time, they would not have had any tuition support for the summer term of the same academic year. The year-round Pell (YRP) was implemented in the academic years 2009–10 and 2010–11 to provide a second Pell Grant to students who enrolled in more than twenty-four credits prior to the third semester and in at least six credits during the summer term. Using a state administrative dataset from a community college system, this paper uses a difference-in-differences approach to examine the credit, credential completion, and labor market outcomes resulting from the YRP. The study finds that for each $1,000 of additional YRP grant funding, summer enrollment increases by 28 percentage points, diploma completion rates increase by 1.6 percentage points, and third-year earnings from college entry increase by $200. For YRP-eligible students who started in a short-term program, the gains are a 2 percentage point higher certificate attainment rate, 3.6 percentage point increase in associate degree completion, and no effect on four-year transfer rates.

Date: 2020
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