DP9699 Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program

Author(s): Gabrielle Fack, Julien Grenet
Publication Date: October 2013
Keyword(s): college enrollment, degree completion, Need-based grants, student persistence
JEL(s): H52, I22, I28
Programme Areas: Public Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=9699

Using comprehensive administrative data on France?s single largest financial aid program, this paper provides new evidence on the impact of large-scale need-based grant programs on the college enrollment decisions, persistence and graduation rates of low-income students. We exploit sharp discontinuities in the grant eligibility formula to identify the impact of aid on student outcomes at different levels of study. We find that eligibility for an annual cash allowance of 1,500 euros increases college enrollment rates by up to 5 percentage points. Moreover, we show that need-based grants have positive effects on student persistence and degree completion.