Trust, Trusts, and Accountability: The Role of States in College Saving Plans

With the adoption of Section 529 plans, states have played an increasing role in college savings. When parents prepay for their children's college education, states invest the proceeds with the expectation that the investment returns will cover tuition increases. In times of fiscal stress, states decrease funding for higher education, causing schools to increase tuition. Because current investment returns have not kept pace with tuition increases, state managers have an even greater burden to ensure that these funds are managed properly. Our research interest is the fiduciary role of state governments in managing these plans in a volatile investment market.     

Evaluating the Effects of Universal Place‐Based Scholarships on Student Outcomes: The Buffalo “Say Yes to Education” Program

A growing number of cities and states have been providing large tuition subsidies for residents through initiatives often called “place‐based” or “Promise” scholarship programs. We examine the effects of a prominent last‐dollar, place‐based scholarship program, Say Yes to Education in Buffalo, NY, on college matriculation and persistence. Employing a difference‐in‐differences strategy comparing changes across cohorts of students eligible and ineligible for large college scholarships, we find that scholarship eligibility is associated with an increase of 20 percent in the likelihood of matriculating into college within one year of graduation, and an increase in the likelihood of persistence into a second year of college of nearly 16 percent. Increases in matriculation are largely at four‐year institutions, where most of the additional funding from Say Yes is concentrated, exclusively at in‐state institutions, both public and private, and are largest at colleges with more selective admission rates. Finally, we see the largest increases in matriculation and persistence among students who attend high schools in the middle third of the poverty distribution. These results suggest that the additional aid provided by Say Yes plays an important role in increasing college matriculation and encouraging students to attend more selective schools.     

The Forgotten Summer: Does the Offer of College Counseling After High School Mitigate Summer Melt Among College‐Intending,Low‐Income High School Graduates?

Despite decades of policy intervention to increase college entry and success among low‐income students, considerable gaps by socioeconomic status remain. To date, policymakers have overlooked the summer after high school as an important time period in students’ transition to college, yet recent research documents high rates of summer attrition from the college pipeline among college‐intending high school graduates, a phenomenon we refer to as “summer melt.” We report on two randomized trials investigating efforts to mitigate summer melt. Offering college‐intending graduates two to three hours of summer support increased enrollment by 3 percentage points overall, and by 8 to 12 percentage points among low‐income students, at a cost of $100 to $200 per student. Further, summer support has lasting impacts on persistence several semesters into college.     

College Enrollment and Completion Among Nationally Recognized High‐Achieving Hispanic Students

Hispanic high school graduates have lower college completion rates than academically similar white students. As Hispanic students have been theorized to be more constrained in the college search and selection process, one potential policy lever is to increase the set of colleges to which these students apply and attend. In this paper, we investigate the impacts of the College Board's National Hispanic Recognition Program (NHRP), which recognizes the highest‐scoring 11th‐grade Hispanic students on the PSAT/NMSQT, as a mechanism of improving college choice and completion. The program not only informs students about their relative ability, but it also enables colleges to identify, recruit, and offer enrollment incentives. Overall, we find that the program has strong effects on college attendance patterns, shifting students from two‐year to four‐year institutions, as well as to colleges that are out‐of‐state and public flagships, all areas where Hispanic attendance has lagged. NHRP shifts the geographic distribution of where students earn their degree, and increases overall bachelor's completion among Hispanic students who traditionally have had lower rates of success. These results demonstrate that college outreach can have significant impacts on the enrollment choices of Hispanic students and can serve as a policy lever for colleges looking to draw academically talented students.     

Can a deportation policy backfire?

Drawing on a model in which utility is derived from consumption and effort (labor supply), we ask how the deportation of a number of undocumented migrants influences the decisions regarding labor supply, consumption, and savings of the remaining undocumented migrants. We assume that the intensity of deportation serves as an indicator to the remaining undocumented migrants when they assess the probability of being deported. We find that a higher rate of deportation induces undocumented migrants to work harder, consume less and, as a result of those responses, to save more. Assuming that the purpose of deportation policy is to reduce the aggregate labor supply of undocumented migrants in order to raise the wages of low-skilled native workers, we conclude that the policy can backfire: an increase in the labor supply of the remaining undocumented migrants can more than offset the reduction in the labor supply arising from the deportation of some undocumented migrants. Simulation shows that if the number of deportations in relation to the size of the undocumented migrant workforce is small, then the combined effect of the reduction in the labor supply of the deportees and the increase in the labor supply of the remaining undocumented migrants can be that the aggregate labor supply of undocumented migrants will increase. It follows that an effective deportation policy has to involve the expulsion of a substantial proportion of the total number of undocumented migrants in the workforce.

     

State‐Funded College Scholarships: General Definitions and Characteristics

State‐funded scholarship programs are transforming the way citizens and policymakers think about higher education. Advocates see these programs as a remedy to problems facing the state workforce such as “brain drain” and “unequal opportunity” for a sound education. Opponents see low retention rates and the number of already‐privileged students receiving benefits as signs that these programs are not reaching their maximum potential. This article traces the development of state‐funded college scholarships from earlier need‐based programs to current merit‐based programs and outlines current debates on policy effectiveness. Currently, 14 states have a state‐funded scholarship program. Differences between programs revolve around the political and economic circumstances of each state.     

Higher Education and the Referendum on Scottish Independence

During the course of the referendum campaign, the Scottish government argued that free tuition for Scottish and EU students symbolised Scotland's preference for universal services and was intrinsically fairer than the ‘marketised’ systems operating in the rest of the UK. Invoking principles of both social justice and pragmatism, three distinct critiques of the Scottish government's higher education policy were mounted and adopted by different policy actors for different political purposes. Following a discussion of these arguments, this article concludes that a more nuanced discussion of higher education policy in Scotland is required, focusing not just on the absence of tuition fees but also on the distribution of debt and allocation of funds across the entire education system. We also note that the focus on tuition fees policy suggests that higher education systems across the UK are set on a process of divergence, whereas there are strong pressures towards policy convergence in areas such as research policy and internationalisation.     

Differential Pricing in Undergraduate Education: Effects on Degree Production by Field

In the face of declining state support, many universities have introduced differential pricing by undergraduate program as an alternative to across‐the‐board tuition increases. This practice aligns price more closely with instructional costs and students’ ability to pay postgraduation. Exploiting the staggered adoption of these policies across universities, this paper finds that differential pricing does alter the share of students studying engineering and possibly business. There is some evidence that student groups already underrepresented in certain fields are particularly affected by the new pricing policies. Price does appear to be a policy lever through which state governments can alter the allocation of students to majors and thus the field composition of the workforce.     

Using Panel Data to Determine the Effect of the Americans with Disabilities Act on Per‐Student Public Education Expenditures at the State Level

The purpose of the present study is to determine whether passage of the American with Disabilities Act (ADA) in 1990 resulted in a statistically significant increase in per‐student public education expenditures at the state level. Although numerous studies have estimated educational cost functions, no prior study has examined the impact of the ADA on per capita education spending. The results of the present study are consistent with anecdotal evidence in that enactment of the ADA has had a positive effect on per‐student educational expenditures; this result suggests that legislative mandates may lead to increased government spending. In addition to the ADA, several of the leading determinants of per‐student education spending include population density, per capita income, percentage of the state that is over the age of 65, percentage of state's residents who have a four‐year college degree, percentage of state's residents who are homeowners, and total student population.     

Parental schooling choice: A case study of minnesota

Public support of nonpublic elementary and secondary education has become one of the most controversial issues in American educational policy, with tuition tax credits and deductions subjects of ongoing debate at both the state and federal level. This article presents the results of one of the first empirical investigations of how a tax subsidy for tuition costs actually influences parents' school choices using data from Minnesota, the first state to have a tuition subsidy pass judicial review at all levels. It should be uyseful to policy makers, researchers, adn practitioners who are concerned with how parents make schooling decisions on behalf of their children, and how tax subsidies for educational expenses might affect those choices.     

Financial aid and for‐profit colleges: Does aid encourage entry?

Concerns over rising college tuition and slow economic growth have brought renewed attention to the role of federal and state financial aid programs in opening access to education. Despite a large body of literature examining the effects of grant aid on four‐year and public two‐year college enrollment, for‐profit colleges—particularly the vast majority that offer two‐year degrees and certificates—have largely been ignored. Using panel data methods and a new administrative data set of for‐profit colleges operating in California between 1989 and 2003, I assess the impact of the federal Pell Grant program, the G.I. Bill, and California's Cal Grant program on the net number of for‐profit colleges per county. The results suggest that for both Pell and Cal Grants, increases in the per‐student maximum award encourage for‐profit entry. This relationship is particularly strong in counties with high adult poverty levels, where more students are eligible for aid. Further, these gains in the private sector do not appear to come at the expense of the public sector. Rather, public community colleges also experience enrollment gains as the generosity of Pell and Cal Grants increases, although this reaction appears to be weaker than the reaction of for‐profits. © 2010 by the Association for Public Policy Analysis and Management.     

Keeping College Options Open: A Field Experiment to Help all High School Seniors Through the College Application Process

Recent research suggests that the college application process itself prevents access. This paper reports results from a school‐based experiment in which application assistance is incorporated into the high school curriculum for all graduating seniors at low‐transition schools. Over three workshops, students were guided to pick programs of interest that they were eligible for, apply for real, and complete the financial aid application. The goal was to create a real college option for exiting students to make the transition easier and more salient. Among all graduating seniors, the program increased application rates by 15 percentage points, and college going rates by 5 percentage points. Among those not taking advanced‐level courses, college enrollment increased by 9 percentage points. The program generated significant effects for a wide range of heterogeneous groups, including both males and females, those from urban and rural schools, and those with above and below average grades. While more intensive than other tested approaches, in‐class application assistance may provide a more effective approach for bridging the gap towards higher education.     

Experimental Evidence on the Effect of Childhood Investments on Postsecondary Attainment and Degree Completion

This paper examines the effect of early childhood investments on college enrollment and degree completion. We used the random assignment in Project STAR (the Tennessee Student/Teacher Achievement Ratio experiment) to estimate the effect of smaller classes in primary school on college entry, college choice, and degree completion. We improve on existing work in this area with unusually detailed data on college enrollment spells and the previously unexplored outcome of college degree completion. We found that assignment to a small class increases students’ probability of attending college by 2.7 percentage points, with effects more than twice as large among black students. Among students enrolled in the poorest third of schools, the effect is 7.3 percentage points. Smaller classes increased the likelihood of earning a college degree by 1.6 percentage points and shifted students toward high‐earning fields such as STEM (science, technology, engineering, and mathematics), business, and economics. We found that test‐score effects at the time of the experiment were an excellent predictor of long‐term improvements in postsecondary outcomes.     

Do two-year colleges increase overall educational attainment? Evidence from the states

Are two- or four-year colleges more efficient at increasing the educational attainment of young adults? I use state variation in two- and four-year college systems to address this question at the state level. I find that the composition and cost of higher education in a state affect the enrollment decisions of individuals in that state. Further, attending a two-year rather than a four-year college may lower the educational attainment of some students, but more students will benefit from the community college alternative. It also most likely costs the state more to educate a student in a four-year rather than a two-year college. As a result, community colleges provide a potentially efficient way to increase access to higher education as well as increase the overall educational attainment of a state's residents.     

Applying Behavioral Insights to Improve Postsecondary Education Outcomes: A Review of Obama Administration Efforts and Next Steps Under the Trump Administration

Amidst growing public concern in the United States over college access and affordability, federal policymakers have implemented many low‐cost, behaviorally‐informed strategies aimed at simplifying the college‐going process and reducing informational barriers. Our paper reviews recent U.S. federal policies and interventions that draw on insights from the behavioral sciences to help students navigate various stages of the college‐going process and summarizes empirical evidence of these efforts on college outcomes, highlighting variations across interventions and for various student populations. We conclude with up‐to‐date discussions of policy proposals and opportunities for behavioral science applications in postsecondary education.     

Paying for grades: Impact of merit‐based financial aid on educational quality

In contrast to education reform efforts that target teachers and schools, merit‐based financial aid for college increases the incentives for high school students and their families to directly affect the quality of education by investing more time and effort in schoolwork. Large‐scale merit‐based aid programs, such as Georgia's HOPE Scholarship, seek to improve education by encouraging students to meet higher standards, in this case by obtaining a 3.0 grade point average in high school and college. Since the HOPE program began in 1993, the number of high school graduates qualifying for the aid has steadily increased to more than 38,000 graduates in the class of 1998, or 59.5 percent of the graduating class. At the same time, the relationship between grades and achievement has remained consistent or, in some cases, improved since HOPE began. In fact, African–American males and females with a 3.1 high school core course grade point average have increased their average Scholastic Assessment Test (SAT) scores by more than 20 points. This indicates that merit‐based aid has improved the quality of K–12 education in Georgia and reduced racial performance disparities by motivating students and their families to commit greater effort to schooling. © 2002 by the Association for Public Policy Analysis and Management.     

Food insecurity negatively impacts academic performance

Recent research has documented high rates of food insecurity among university students, particularly students in their first year. Food insecurity among university students has been linked to poorer self‐reported health and academic outcomes. However, few studies have linked reports of food insecurity to objective student outcomes. In this study, we examine how food insecurity is associated with first‐year university students' (n = 591) academic performance, adjusting for objective measures of high school academic performance and self‐reported indicators of socioeconomic background. Zero‐ and one‐inflated beta regression was used to examine if food insecurity predicted grade point average (GPA) in the fall 2015 and spring 2016 semesters. Logistic regression was used to determine if food insecurity at the end of the fall 2015 and spring 2016 semesters was a predictor of retention to fall 2016. Food‐insecure students had a significantly lower GPA than food‐secure students. In fall 2015, 59% of food‐insecure students obtained at least a “B” grade (GPA = 3.00); our models suggest this percentage would increase to 72% if these same students were food secure. Food‐insecure students were less likely to be enrolled in fall 2016 than food‐secure students (OR = 0.72, 95% CI [0.41, 1.27]), though this difference was not statistically significant. These results indicate that food insecurity negatively impacts first‐year university students' academic performance, even after adjusting for high school academic performance and socioeconomic background. Students GPA, and potentially university retention rates, may increase if food insecurity on campus is minimized.     

The Impact of the Earned Income Tax Credit on Household Finances

Using a simulated instrument strategy, we analyze how expansions to the federal and state Earned Income Tax Credits (EITC) affected household finances over the past two decades. Using data from the Survey of Income and Program Participation wealth topical modules, we also test whether responses differ over time, as well as whether there are different responses to the federal and state expansions, and how responses vary by educational attainment. A $1,000 policy‐induced increase in the average household EITC leads to a 3 percentage point increase in the likelihood of holding money in a savings or checking account, and approximately $700 more held in savings balances. These results are coupled with large increases in pre‐tax family earnings. We also find some evidence of decreases in unsecured debt holdings. We interpret these results as further evidence that the EITC increases the financial stability of low‐income single mothers.     

Can Financial Aid Help to Address the Growing Need for STEM Education? The Effects of Need‐Based Grants on the Completion of Science,Technology, Engineering,and Math Courses and Degrees

Although workers in science, technology, engineering, and math (STEM) fields earn above‐average wages, the number of college graduates prepared for STEM jobs lags behind employer demand. A key question is how to recruit and retain college students in STEM majors. We offer new evidence on the role of financial aid in supporting STEM attainment. Exploiting a regression discontinuity that allows for causal inference, we find that eligibility for need‐based financial aid increased STEM credit completion by 20 to 35 percent among academically‐ready students in a large, public higher education system. These results appear to be driven by shifting students into STEM‐heavy course loads, suggesting aid availability impacts the academic choices students make after deciding to enroll. We also find suggestive evidence that aid offers increase degree attainment in STEM fields, although we cannot rule out null impacts on STEM degree production.     

Postsecondary preparation and remediation: Examining the effect of the early assessment program at California State University

In this paper we investigate how participation in the Early Assessment Program, which provides California high school juniors with information about their academic readiness for college‐level work at California State University campuses, affects their college‐going behavior and need for remediation in college. Using administrative records from California State University,–Sacramento and the California Department of Education, we find that participation in the Early Assessment Program reduces the average student's probability of needing remediation at California State University by 6.1 percentage points in English and 4.1 percentage points in mathematics. Rather than discouraging poorly prepared students from applying to Sacramento State, EAP appears to lead students to increase their academic preparation while still in high school. © 2010 by the Association for Public Policy Analysis and Management.