The Impact of Developing Hispanic-Serving Institution Program on College Persistence, Completion Rates, and Student Debt

Li Feng, Yao-Yu Chih, Yunwei Gai and Lynn MacDonald

No 11392, CESifo Working Paper Series from CESifo

Abstract: The Developing Hispanic-Serving Institution (DHSI) Program is one of the largest federal grant programs that support Hispanic-Serving Institutions. We employ an eleven-year panel dataset of U.S. higher education institutions to implement a difference-in-differences (DID) design, two-way fixed effect model (TWFE), and propensity score matching (PSM) to compare DHSI grantee institutions with other Title V eligible higher education institutions that did not receive DHSI funding. We find that the receipt of DHSI grant funding helps these institutions significantly improve their retention rates (2~ percentage points), completion rates (1-3 percentage points), and reduce their students’ debt level (e.g., $500~$1000 lower for graduated students). Our back-of-the-envelope cost-benefit calculation shows that the DHSI program benefits exceed cost.

Keywords: Developing Hispanic-Serving Institution (DHSI) Program; Hispanic-Serving Institutions (HIS); difference-in-differences (DID) design; two-way fixed effect model (TWFE); propensity score matching (PSM) approach (search for similar items in EconPapers)
JEL-codes: H52 I22 I23 I28 (search for similar items in EconPapers)
Date: 2024
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