Impact of Financial Aid on Undergraduates' Academic Performance: A Financial Aid Supply and Demand Hypothesis

• In Event: Sheraton Roundtable Session Seven
  In Roundtable Session: The Landscape and Outcomes of Student Financial Aid Systems (Table 4)

Abstract

Based on 1339 funded undergraduates, this study used Propensity Score Matching method to explore the impact of financial aid on academic performance of funded students from different regions. The results show that the increase in financial aid can significantly positively predict overall funded students’ academic performance; the increase in financial aid cannot significantly predict the “urban” original students’ academic performance, but can significantly predict the “township” and “rural” original students’ academic performance; the increase of financial aid has stronger effect on township original students than rural original students. The research proposed a Financial Aid Supply and Demand Hypothesis and found that the degree to which the funding level meets student needs is the core mechanism that affects the funding effect.

Authors

• Biao Zeng, Beijing Normal University
  Presenting Author

• HongBo Wen, Beijing Normal University
  Non-Presenting Author

• Qile Liu, University of Macau
  Non-Presenting Author