Document Author: Drew M. Anderson

Seeking STEM: The Causal Impact of Need-Based Grant Aid on Undergraduates’ Field of Study (2023)

ABSTRACT
Increasing the number of science, technology, engineering, and mathematics (STEM) degrees is a national priority and one way to promote the socioeconomic mobility of students from low-income families. Prior research examining why students do not complete STEM majors often points to students’ lack of academic preparation, preferences for non-STEM majors, or lack of information about the value of STEM. This paper uses a randomized experiment to investigate an alternative explanation, that some students lack the financial resources to succeed in demanding majors. In a control group of university students from low-income families, 18.6% of students had declared a STEM major by their third year of college. In a treatment group who were offered additional need-based grant aid upon entering college, 26.5% of students declared a STEM major. Among students who had graduated within six years after entering college, 12.2% of control group graduates had earned a STEM degree compared to 20.2% of treatment group students. Need-based grants thus appear to have the potential to increase the share of low-income students studying and earning degrees in STEM.

Experimental Evidence on the Impacts of Need-Based Financial Aid: Longitudinal Assessment of the Wisconsin Scholars Grant (2020)

We conduct the first long-term experimental evaluation of a need-based financial aid program, the privately funded Wisconsin Scholars Grant. Over multiple cohorts, the program failed to increase degree completion and graduate school enrollment up to 10 years after matriculation. The program did reduce time-to-degree for some students and modestly increased the number of STEM degrees earned. The lack of robust effects raises important questions about the conditions necessary for financial aid to benefit students.