Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program

Abstract

Using comprehensive administrative data on France's single largest financial aid program, this paper provides new evidence on the impact of large-scale need-based grant programs on the college enrollment decisions, persistence and graduation rates of low-income students. We exploit sharp discontinuities in the grant eligibility formula to identify the impact of aid on student out- comes at different levels of study. We find that eligibility for an annual cash allowance of 1,500 euros increases college enrollment rates by up to 5 percent- age points. Moreover, we show that need-based grants have positive effects on student persistence and degree completion. JEL Classification: H52, I22, I28, J24, J38 Keywords: Need-based grants; college enrollment; student persistence; degree completion