Document Tag: financial aid

The Returns to College Persistence for Marginal Students: Regression Discontinuity Evidence from University Dismissal Policies (2018)

We estimate the returns to college using administrative data on both college enrollment and earnings. Exploiting that colleges dismiss low-performing students on the basis of exact GPA cutoffs, we use a regression discontinuity design to estimate the earnings impacts of college. Dismissal leads to a short-run increase in earnings and tuition savings, but the future fall in earnings is sufficiently large that 8 years after dismissal, persisting students have already recouped their up-front investment with an internal rate of return of 4.1%. We provide a variety of evidence that manipulation of the running variable does not drive our results.

The Real Price of College (2016)

The high price of college is the subject of media headlines, policy debates, and dinner table conversations because of its implications for educational opportunities, student and family pocketbooks, and the economy.1 Some people caution against giving too much weight to the advertised price of a college education, pointing out that the availability of financial aid means that college is not as expensive as people think it is.2 But they overlook a substantial problem: for many students, the real price of college is much higher than what recruitment literature, conventional wisdom, and even official statistics convey. Our research indicates that the current approach to higher education financing too often leaves low-income students facing unexpected, and sometimes untenable, expenses.

#RealCollege (2016)

An op-ed by Sara Goldrick-Rab for AFT Voices that explains the origins of the first #RealCollege convening