Colleges in Competition? Effects of Tuition-Free Policies on Two- and Four-Year College Funding and Enrollment

• In Event: AERA Roundtable Session Sunday 1:45 pm
  In Roundtable Session: Predictors of institutional Sustainability: enrollment and other considerations

Abstract

More than 30 states have implemented tuition-free college policies. While policies vary in their design features, many limit eligibility to students who enroll in community as opposed to four-year colleges, which may inadvertently divert students away from these institutions. I use difference-in-differences analysis to estimate the effects of free community college policies on public college enrollment, state appropriations, and tuition revenue. Findings suggest that states with more salient tuition-free policies and fewer eligibility restrictions may experience larger increases in community college enrollment and concurrent declines in regional four-year college enrollment. Despite some states’ increased community college enrollment post policy implementation, I find limited evidence that these policies adversely affect state appropriations or net tuition revenue for regional four-year colleges.

Author

• Daniel Sparks, University of Arkansas