Little is known about the effects of need-based financial aid disbursed late into college and how students respond when they approach lifetime limits for receiving aid. I exploit changes to federal Pell Grant eligibility rules that reduced the lifetime availability for grant aid from 9 to 6 full-time-equivalent years to examine these questions.…

The returns to higher education have increased dramatically in recent decades with the rise of the global, knowledge-based economy. Research shows that the college earnings premium has increased more than 10 percent over the last fifteen years and that the returns to college are concentrated among completers. Despite these benefits, many students…