The Impact of Pell Grant Eligibility on Community College Students’ Financial Aid Packages, Labor Supply, and Academic Outcomes
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In this article, we examine the effects of receiving a modest Pell Grant on financial aid packages, labor supply while in school, and academic outcomes for community college students. Using administrative data from one state, we compare students just above and below the expected family contribution cutoff for receiving a Pell Grant. We find that other financial aid adjusts in ways that vary by institution: Students at schools that offer federal loans borrowed more if they just missed the Pell eligibility threshold, but at other schools, students were instead compensated with higher state grants. Focusing on the loan-offering schools, we find suggestive evidence that receiving a modest Pell Grant leads students to reduce labor supply and increase enrollment intensity. We also provide indirect evidence that students’ initial enrollment choices are influenced by an offer of Pell Grants versus loans.
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Park and Scott-Clayton (2018) find that a small Pell grant induces community college students to reduce labor supply while enrolled and to modestly increase enrollment intensity.
“They find that a small Pell grant induces these students to reduce labor supply (while enrolled) and to modestly increase enrollment intensity.”
From College Costs, Financial Aid, and Student Decisions (2022) · cites this paper as Park & Scott-Clayton, 2018
Grant aid reduces student labor supply while enrolled.
“Several studies have found at least suggestive evidence that grant aid reduces' student labor supply while enrolled (Scott-Clayton, 2011;Broton, Goldrick-Rab, and Benson, 2016;Park & Scott-Clayton, 2018;Denning, 2019;Kofoed, 2022), potentially freeing students up to devote more time to school.”
From College Costs, Financial Aid, and Student Decisions (2022) · cites this paper as Park & Scott-Clayton, 2018
Community colleges in one state prioritized Pell-ineligible students in their awarding of limited state aid dollars, potentially having the same effect as a claw-back.
“Community colleges often don't have significant institutional aid to claw back, but Park and Scott-Clayton (2018) nonetheless find that community colleges in one state prioritized Pell-ineligible students in their awarding of limited state aid dollars, potentially having the same effect as a claw-back.”
From College Costs, Financial Aid, and Student Decisions (2022) · cites this paper as Park and Scott-Clayton (2018)
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References 44 · Cited by 41
- Authors
- Park, R. S. E., & Scott-Clayton, J.
- Affiliations
- Columbia University (US)
- National Bureau of Economic Research (US)
- Venue
- Educational Evaluation and Policy Analysis
- Published
- 2018-07-06
- Volume
- 40
- Issue
- 4
- Pages
- 557-585
- ISSN
- 0162-3737 (ISSN-L)
- 1935-1062
- OpenAlex
- W2532108004
- Cited by
- 41
- References
- 44
- Citations by year
- 2025: 14 · 2024: 2 · 2023: 7 · 2022: 5 · 2021: 5 · 2020: 6 · 2019: 1 · 2017: 1
- FWCI
- 9.73
- Type
- journal article
- Language
- en
- Open access
- green
- hdl.handle.net
- Licence
- Locations
- Educational Evaluation and Policy Analysis (publishedVersion)
- VTechWorks (Virginia Tech) (submittedVersion, cc-by-nc-nd)
- Columbia Academic Commons (Columbia University)
- Funders
- Institute of Education Sciences (Grant R305C11001)
- Topics
- Social Sciences › Education › Higher Education Research Studies
- Social Sciences › Education › School Choice and Performance
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Politics, Economics, and Education Policy
- Keywords
- Pell grants, community college students, Expected Family Contribution, federal student loans, state grants, educational outcomes, college enrollment decisions, student aid policy
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