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ERIC Number: ED433755
Record Type: Non-Journal
Publication Date: 1999-Jun
Pages: 22
Abstractor: N/A
Reference Count: N/A
ISBN: N/A
ISSN: N/A
Possible Long-Term Effects of Awarding Merit Aid. AIR 1999 Annual Forum Paper.
Mulugetta, Yuko
This study used data from the National Postsecondary Student Aid Study (NPSAS) for 1989-90 and 1995-96 to examine the awarding of need-based and merit student financial aid to entering college freshmen by private four-year colleges. Regression analysis used the amount of institutional need-based grant awarded to an individual freshman as a dependent variable and five independent variables: (1) the institution's tuition and fees; (2) amount of financial need of a student; (3) family income; (4) Scholastic Assessment Test (SAT) scores; and (5) under-represented or over-represented minority status. These variables explained less than 20 percent of the variance in awarding need-based aid in 1989-90 and about 25 percent in 1995-96, suggesting that there are other significant factors determining need-based aid. The same analysis with merit grant aid and the same five independent variables found these variables did not account for the observed variance, although SAT scores were the most significant determinant. Family income was not a predictive factor suggesting that merit aid is not used to entice the enrollment of wealthier students. Implications of a growing inequality in financial aid resulting from the practice of financial aid leveraging strategies based on differential price discounting are addressed. (Contains 17 references.) (DB)
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A