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  4. May 2023
  5. Matching Pell Grants: Implications for College Debt and Parental Transfers

Matching Pell Grants: Implications for College Debt and Parental Transfers

  • Patricia Beeson
  • Daniele Coen-Pirani
  • Jessica LaVoice
  • Marla Ripoll
AEA Papers and Proceedings
vol. 113, May 2023
(pp. 524-29)
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Abstract

We study the causal effect of the net price of college on student debt, schooling investment, and parental transfers by exploiting a natural experiment. A large public US university introduced a program to match Pell Grants in academic year 2019–2020. We use a difference-in-difference approach to measure the impact of this policy on the variables of interest and interpret our findings using a simple structural model of human capital investment under credit constraints.

Citation

Beeson, Patricia, Daniele Coen-Pirani, Jessica LaVoice, and Marla Ripoll. 2023. "Matching Pell Grants: Implications for College Debt and Parental Transfers." AEA Papers and Proceedings, 113: 524-29. DOI: 10.1257/pandp.20231080

Additional Materials

JEL Classification

  • G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
  • I22 Educational Finance; Financial Aid
  • I23 Higher Education; Research Institutions