The Effects of Student Financial Aid on Persistence: A Sequential Analysis

Abstract

This article analyzes the effects of different types of financial aid on year-to-year persistence by college students in the high school class of 1980. The authors assessed the effects of different types of aid packages on year-to-year persistence and found that: (1) Social and educational background had different effects on persistence at different points in the college experience; (2) College experiences—the characteristics of the college, attending full time, and college grades—had an influence throughout the matriculation process; (3) Student financial aid had a positive effect on student persistence for students in the high school class of 1980; and (4) Loans, as well as grants and work study, were effective in promoting persistence.

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