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 the provision of 1,500 euros cash allowances to prospective undergraduate or graduate students increases their college enrollment rates by 5 to 7 percent. Moreover, we show that need-based grants have positive effects on student persistence and degree completion. (JEL H52, I22, I24, I28, J24)
Fack, Gabrielle, and Julien Grenet.
"Improving College Access and Success for Low-Income Students: Evidence from a Large Need-Based Grant Program."
American Economic Journal: Applied Economics,
National Government Expenditures and Education
Educational Finance; Financial Aid
Education and Inequality
Education: Government Policy
Human Capital; Skills; Occupational Choice; Labor Productivity