Low-Income Student College Destinations: Exploring the Mechanism of No-Loan Policies

• In Event: Marriott Roundtable Session 21
  In Roundtable Session: The Role of Financial Aid and College Costs in College Access

Abstract

This study contributes to the increasing body of literature that aims to understand how “no-loan” financial aid policies have altered the admissions landscape. Under a no-loan policy, students are not required to take out a loan to pay for tuition, and instead receive grant aid (some policies also cover living expenses). As campuses continue to adopt no-loan policies in hopes attracting low-income students, it is imperative that scholars understand how they influence college choice. Utilizing Radford’s college destination model (2013), we consider if no-loan policies influence the application and matriculation stages of high-achieving low-income students. Through focus group research, we find that one institution’s no-loan policy motivated the interviewed students to both apply and matriculate.

Authors

• Emma Bausch, University of Michigan - Ann Arbor

• Steven Lonn, University of Michigan

• Kedra Ishop, University of Michigan - Ann Arbor