District Systems to Support Equitable and High-Quality Teaching and Learning
Category: Policy, Politics, and Governance
While initial Pell Grant eligibility is solely determined by financial need, students must achieve Satisfactory Academic Progress to retain it. Students eligible for higher aid are less likely to complete college when they lose eligibility compared to those with lower aid. This non-random attrition introduces bias in the Local Average Treatment Effects. I construct nonparametric bounds on LATE under two monotonicity assumptions. Bound estimates reveal that students eligible for higher aid are up to 4 percentage points more likely to graduate within four years than those with less aid. In the worst case, they are still up to 2 percentage points more likely to graduate.
Keywords
Financial Aid
Education level
Document Object Identifier (DOI)
10.26300/a576-xv04
