Exploring Race and Income Heterogeneity in the Effects of State Merit Aid Loss Among Four-Year College Entrants.

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Title: Exploring Race and Income Heterogeneity in the Effects of State Merit Aid Loss Among Four-Year College Entrants.
Authors: Cummings, Kristen M. (AUTHOR), Deane, KC (AUTHOR), McCall, Brian P. (AUTHOR), DesJardins, Stephen L. (AUTHOR)
Source: Journal of Higher Education. 2022, Vol. 93 Issue 6, p873-900. 28p. 6 Charts, 1 Graph.
Subjects: Government aid, Race, Regression discontinuity design, Virtues, Financial aid, Bachelor's degree, Scholarships
Abstract: Despite the robust literature on the effects of financial aid, the effects of financial aid loss remain largely understudied. We employ a regression discontinuity design, leveraging a minimum GPA scholarship renewal threshold, to examine the effect of losing state merit aid eligibility on college student stop-out, transfer, and bachelor's degree completion. We estimate the effects of GPA-based eligibility loss for low- and higher-income students, Black and White students, and the interactions of the two separately. Using longitudinal state administrative data from academic years 2011 to 2014 on four cohorts of students attending public four-year colleges, we find evidence that the effects of eligibility loss at the first renewal checkpoint differ among the subgroups of interest. Losing eligibility for a state merit aid scholarship at the first renewal checkpoint leads to increased stop-out among higher-income White students and increased transfer to a community college among low-income Black students. State merit aid loss has no statistically significant effect on on-time bachelor's degree completion but causes a decrease in the probability of 150% time bachelor's degree completion for Black students. We close with implications for policy and research. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Higher Education is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Psychology and Behavioral Sciences Collection
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  Data: Exploring Race and Income Heterogeneity in the Effects of State Merit Aid Loss Among Four-Year College Entrants.
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  Data: <searchLink fieldCode="AR" term="%22Cummings%2C+Kristen+M%2E%22">Cummings, Kristen M.</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Deane%2C+KC%22">Deane, KC</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22McCall%2C+Brian+P%2E%22">McCall, Brian P.</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22DesJardins%2C+Stephen+L%2E%22">DesJardins, Stephen L.</searchLink> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Higher+Education%22">Journal of Higher Education</searchLink>. 2022, Vol. 93 Issue 6, p873-900. 28p. 6 Charts, 1 Graph.
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  Data: <searchLink fieldCode="DE" term="%22Government+aid%22">Government aid</searchLink><br /><searchLink fieldCode="DE" term="%22Race%22">Race</searchLink><br /><searchLink fieldCode="DE" term="%22Regression+discontinuity+design%22">Regression discontinuity design</searchLink><br /><searchLink fieldCode="DE" term="%22Virtues%22">Virtues</searchLink><br /><searchLink fieldCode="DE" term="%22Financial+aid%22">Financial aid</searchLink><br /><searchLink fieldCode="DE" term="%22Bachelor's+degree%22">Bachelor's degree</searchLink><br /><searchLink fieldCode="DE" term="%22Scholarships%22">Scholarships</searchLink>
– Name: Abstract
  Label: Abstract
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  Data: Despite the robust literature on the effects of financial aid, the effects of financial aid loss remain largely understudied. We employ a regression discontinuity design, leveraging a minimum GPA scholarship renewal threshold, to examine the effect of losing state merit aid eligibility on college student stop-out, transfer, and bachelor's degree completion. We estimate the effects of GPA-based eligibility loss for low- and higher-income students, Black and White students, and the interactions of the two separately. Using longitudinal state administrative data from academic years 2011 to 2014 on four cohorts of students attending public four-year colleges, we find evidence that the effects of eligibility loss at the first renewal checkpoint differ among the subgroups of interest. Losing eligibility for a state merit aid scholarship at the first renewal checkpoint leads to increased stop-out among higher-income White students and increased transfer to a community college among low-income Black students. State merit aid loss has no statistically significant effect on on-time bachelor's degree completion but causes a decrease in the probability of 150% time bachelor's degree completion for Black students. We close with implications for policy and research. [ABSTRACT FROM AUTHOR]
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  Data: <i>Copyright of Journal of Higher Education is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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      – Type: doi
        Value: 10.1080/00221546.2022.2042155
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      – Code: eng
        Text: English
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        PageCount: 28
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    Subjects:
      – SubjectFull: Government aid
        Type: general
      – SubjectFull: Race
        Type: general
      – SubjectFull: Regression discontinuity design
        Type: general
      – SubjectFull: Virtues
        Type: general
      – SubjectFull: Financial aid
        Type: general
      – SubjectFull: Bachelor's degree
        Type: general
      – SubjectFull: Scholarships
        Type: general
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      – TitleFull: Exploring Race and Income Heterogeneity in the Effects of State Merit Aid Loss Among Four-Year College Entrants.
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            NameFull: Deane, KC
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            NameFull: McCall, Brian P.
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            NameFull: DesJardins, Stephen L.
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              Text: 2022
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