Institutional Aid and Student Persistence: An Analysis of the Effects of Institutional Financial Aid at Public Four-Year Institutions

Abstract

This study examines the effects of institutional financial aid on year-to-year persistence for a cohort of first-time, first-year students at three large, doctorate-granting public universities. Though billions of dollars are spent each year on institutional aid, much of the research to date on student persistence does not consider its effects on student departure. Using data from a statewide student unit record database, the effects of institutional aid on persistence were modeled using logistic regression. Findings suggest that institutional financial aid has a positive but modest effect on persisting. Interestingly, the effects of aid were greater for men than for women, all else being equal.

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