ERIC Number: ED394469
Record Type: RIE
Publication Date: 1996-Apr
Tuition Prices, Financial Aid, and Access to Public Higher Education: A State-Level Analysis.
Heller, Donald E.
This report addresses the relationship between tuition, financial aid, and access to public higher education through an economic analysis of data from individual states from 1976 to 1993. The analysis focuses on states, rather than the individual, as the unit of observation and how state policies regarding the setting of tuition rates and financial aid budgets affect access to public higher education. The first part of this study provides an analysis of public higher education enrollment rates in the United States during this period; the second part offers a fixed-effects model utilizing cross-sectional and time-series data. The model takes advantage of the natural variations in the outcome and predictor measures both across states and over the time period involved. Findings are consistent with many previous student demand studies; first-time enrollees should be more price sensitive as they have not yet made an investment in a postsecondary education. Already enrolled students, especially those in upper division levels, should be more willing to pay higher tuition levels to complete a degree program and gain the benefits in the labor market of having a college diploma. This study also confirms that at least among some groups, higher levels of grant spending are associated with higher enrollment rates. The positive relationship between unemployment and enrollment is confirmed. The model allows each state to predict its enrollment rate for each racial group; it also allows identification of the states and years when enrollment rates for specific groups were high or low. (Contains 22 references.) (NAV)
Publication Type: Speeches/Meeting Papers; Numerical/Quantitative Data; Reports - Research
Education Level: N/A
Authoring Institution: N/A
Note: Paper presented at the Annual Meeting of the American Educational Research Association (New York, NY, April 8-13, 1996).