The Effects of State Financial Aid Priorities on Postsecondary Enrollment and Diversity

• In Event: College Access, Financial Aid, and Student Success

Abstract

Student access to enrolling in postsecondary education is deeply connected to the availability of financial aid. Over the last three decades, states have substantially increased their investment in financial aid. However, state investment in the various forms of aid is not equal and may impact student behavior. Guided by policy design theory’s conception of social construction and political power, this study examines the differences in enrollment and student body diversity at institutions relative to the mix of state financial aid investment (non-need vs need-based). Using a fixed-effect multivariate linear regression approach, our findings suggest increasing need-based aid is associated with increased undergraduate FTE but decreased institutional diversity. This study should inform policymakers considering expanding state financial aid investment.

Authors

• Mónica Maldonado, University of Georgia - Athens

• Alex Monday, University of Georgia - Athens