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Author(s):Mudel, D., and Rice, L
Title:The impact of increases in Pell Grant awards on college-going among lower income youth: Results from a natural experiment
Organization:Brookings Center on Children and Families
Short Description:Although a formal, controlled experiment testing the impact of the Pell program has not been conducted, a ‘natural experiment’ did occur during the 1996-2004 years. During most of this period (1996-2002), increases in Pell and other grant awards and relatively stable public college tuitions combined to create small, but steady declines in net-of-grant prices. These declines created an opportunity to assess the impact of grant programs on college-going among lower income high school graduates.
Annotation:Although a formal, controlled experiment testing the impact of the Pell program has not been conducted, a ‘natural experiment’ did occur during the 1996-2004 years. During most of this period (1996-2002), increases in Pell and other grant awards and relatively stable public college tuitions combined to create small, but steady declines in net-of-grant prices. These declines created an opportunity to assess the impact of grant programs on college-going among lower income high school graduates. These grant-induced price declines were concentrated in lower-price public colleges (two- and four-year, non Ph.D. granting colleges), an especially important segment of the college marketplace because these schools are the most likely choices of lower-income youth who are on the margin between attending and not attending college.
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Associated Keywords:
Female Students
Low-Income Students
Need-based Aid
Pell Grants

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