Missing Money? Financial Aid Receipt in California Community Colleges

• In Event: Exploring the Intricacies of Financial Aid Policy: Aid Applications and Student Outcomes

Abstract

The complexity of applying for financial aid may significantly impede the efficacy of means-tested financial aid programs (Dynarski and Wiederspan, 2012). This paper presents evidence that students face substantial barriers to receiving aid even after completing the Free Application for Federal Student Aid (FAFSA). We show that over 20 percent of eligible California community college students do not receive a Pell Grant, resulting in $157 million foregone in a single semester. We argue that the most important explanation is that students have difficulty completing post-FAFSA administrative requirements such as verification. There are also striking differences across campuses in Pell Grant take-up rates, which suggest that campus policies may be important determinants of whether eligible students receive Pell Grant aid.

Authors

• Elizabeth Z. Friedmann, University of California - Davis

• Robert Linden, University of California - Davis

• Paco Martorell, University of California - Davis