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Performance-based aid, enhanced advising, and the income gap in college graduation: Evidence from a randomized controlled trial

Christopher Erwin (), Melissa Binder (), Cynthia Miller and Kate Krause ()
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Christopher Erwin: NZ Work Research Institute, Faculty of Business, Economics and Law at AUT University
Melissa Binder: Department of Economics, University of New Mexico
Cynthia Miller: Manpower Demonstration Research Corporation
Kate Krause: Department of Economics, University of New Mexico

No 2020-06, Working Papers from Auckland University of Technology, Department of Economics

Abstract: Income gaps in college enrollment, persistence, and graduation raise concerns for those interested in equal opportunity in higher education. We present findings from a randomly assigned scholarship for low-income students at a medium-sized public four-year university. The program focused solely on the first four semesters of enrollment and tied aid disbursements to modest academic benchmarks and enhanced academic advising. Meaningful decreases in time to degree appear to be driven by students with the lowest academic preparation and family income. Treated students took out approximately 20 percent less in student loans during the duration of the program. Participants also indicated high satisfaction with the program’s model of enhanced academic advising.

Keywords: enhanced advising; merit-based financial aid; income gaps; college graduation (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-edu and nep-exp
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