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Several studies show that enrollment rates and persistence of financially-disadvantaged students improve with the availability of Federal and Institutional aid. However, pressures from various sources are causing colleges to divert aid funding from the needy to students who do not really need it. Students looking to get a college degree and in need of financial assistance also have better chances of persisting with their studies with financial aid.
In a paper presented this month at the 34th annual meeting of the Association for the Study of Higher Education in Vancouver, BC., Nicholas Hillman, a Doctoral Candidate for Educational Leadership & Policy Studies at Indiana University, showed that despite the growth of institutionally-funded financial aid over the past decade, merit-based aid has significantly reduced the amount of need-based aid available for the disadvantaged.
Mr. Hillman cited that “market-oriented preferences” such as SAT scores and non-resident enrollment are generally the primary factors that determine the availability of institutional aid for students. Merit-based aid which generally does not scrutinize financial capability is commonly used to attract high achievers and prestige-garnering students.
This trend of “buying” high-achieving students, without regard to financial sensitivity, is not only prevalent in private colleges and universities but public educational institutions as well. “The extent to which colleges target aid away from the most price-responsive students suggests that institutional aid programs are working against public policy goals of expanding access and improving affordability for the nation's financially-needy students.” Mr. Hillman said.
A study on the effects of institutional aid and student persistence done by Indiana University’s Gross, Hossler and Ziskin mentioned that “institutional financial aid may be going disproportionately to students who are more likely to persist overall.” Majority of institutional aid are in the form of merit-based aid.
A short-lived program in New Orleans for low-income students showed that persistence improves significantly among the disadvantaged when need-based and merit-based aids are used simultaneously. Participants in the program proved that students were more likely to enroll in college fulltime, passed more courses and earned more course credits, and had higher rates of registration compared to recipients of federal need-based aid only. The program called “Opening Doors” was developed to help low-income students attending college cover more of their expenses and also provide a financial incentive to make good progress. The program was discontinued after hurricane Katrina, and is yet to be restarted.
A study conducted by Bradley R. Curs for the University of Oregon on “The Effects of Institutional Merit-Based Aid On the Enrollment Decisions of Needy Students” showed that a $1000 dollar raise in merit-based aid increase the likelihood of enrollment in the University of Oregon by as much as 8.4% for in-state students. This trend can be of great help for enrollment management as merit-based aid can be targeted towards specific students and is unique for each institution. According to Mr. Curs, “It is important for enrollment managers to target those students for which their financial aid dollars will have the largest effect. Merit-based aid is an attractive enticement for needy students.”
The same study likewise showed that need-based grants such as Pell grants have no bearing on the likelihood of college enrollment, as it is student-specific and can be activated after the student is enrolled. Mr. Curs is an assistant professor of educational leadership and policy analysis at the University of Missouri.
According to Sheila Danzig, Executive Director of online degree portal, degree.com, “Adults with jobs can get an online education through distance learning degrees or by taking online courses from many of the featured online schools on our website. An online degree provides a good alternative to going to a traditional brick and mortar college as it allows one to learn at your own pace and at the convenience of your own home." Danzig continued, "Degree.com offers a free review copy of a THE BIG BOOK OF SCHOLARSHIP AND FINANCIAL AID INFORMATION at http://www.degree.com/free-downloads.htm
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