The Urban University Commitment: How a Loan Reduction Program Influences Access at a Large Public University

• In Event: AERA Roundtable Session Thursday 9:50 am Four Seasons Ballroom 4
  In Roundtable Session: Financing Student Success: From Promise Programs to Loan Reduction Initiatives (Table 7)

Abstract

Despite financial aid, students with financial need are less likely to enroll in college than their higher income peers. In this study I utilized regression discontinuity to investigate the effectiveness of a loan-reducing financial aid program in promoting access for students with financial need at one large public university. Results showed that the program had a positive effect on enrollment for students with financial need overall, and particularly Hispanic students. This study validates that at this university, a loan reduction program with a $65k income cutoff is effective in enrolling students with financial need. The findings provide information that other institutions can use to inform the structuring of financial aid programs that enroll more students with financial need.

Author

• Caroline Neary, University of Houston