Does a Performance-Based, University Targeting Financial Aid Incentivize Institutions to Increase Access, Affordability, and Quality?

• In Event: The Influence of Policy on Institutional Research, Funding, and Access

Abstract

To improve access and affordability, various federal and state financial aid has been provided to students. Yet, how institutions respond to financial aid policies is critical in achieving the policy goals. An increase in college costs, educational debt, and demand for accountability might raise important questions about how to design financial aid and incentivize institutions. Using South Korea’s “Government Grant Type II” program which targets institutions and provides funding for institutional financial aid based on universities’ efforts to enhance affordability and access, the current study examines if such policy creates meaningful changes in institutions’ tuition, financial aid behaviors, and investment in educational quality. The findings provide significant implications for designing financial aid to increase access and affordability, without sacrificing quality.

Authors

• Jeongeun Kim, University of Maryland
  Presenting Author

• SeokJean Jeon, Yonsei University
  Presenting Author

• HeeJoo Park, Yonsei University
  Presenting Author