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Author(s):Long, B
Title:How do financial aid policies affect colleges? The institutional impact of the Georgia HOPE scholarship
Source:http://gseacademic.harvard.edu/~longbr/BLong_-_...
Date:2003
Organization:
Short Description:This paper examines the effects of financial aid policies on the behavior of postsecondary institutions. Using the introduction of the Georgia HOPE Scholarship as a natural experiment, it investigates the impact of the policy on college pricing, institution aid, expenditures, and state appropriations.
Annotation:This paper examines the effects of financial aid policies on the behavior of postsecondary institutions. Using the introduction of the Georgia HOPE Scholarship as a natural experiment, it investigates the impact of the policy on college pricing, institution aid, expenditures, and state appropriations. The results suggest that four-year colleges in Georgia, particularly private institutions, did respond by increasing student charges. In the most extreme case, colleges recouped approximately 30 percent of the scholarship award. As a result, the institutional responses reduced the intended benefit of the scholarship and increased the cost of college for non-recipients.
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Associated Keywords:
Affordability, Tuition and College Costs
Documents
Financial Aid
Merit-based Aid
Private Colleges
Scholarships

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