Pell Grants as Performance-Based Aid? An Examination of Satisfactory Academic Progress Requirements

• In Event: 26.044 - Performance-Based Funding and State Investment in Higher Education

Abstract

Despite the requirement that federal aid recipients make “Satisfactory Academic Progress” (SAP), the Pell Grant is commonly thought of as purely “need-based.” Renewal of the award is contingent on meeting minimum academic standards, similar to those in models of performance-based scholarships. It is not clear how many students are affected or how the policies shape student outcomes. In this study, we draw from literatures on performance-based funding and academic probation to consider the potential implications of SAP policies on student outcomes. To understand the prevalence of SAP failure, we use state administrative data with term-by-term measures of Pell receipt, student grades, and attempted and earned credits to take a closer look at SAP failure and patterns of student persistence.

Authors

• Lauren Theresa Schudde, Teachers College, Columbia University

• Judith Scott-Clayton, Teachers College, Columbia University