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Research ArticleArticles

How do Financial Aid Policies Affect Colleges?

The Institutional Impact of the Georgia HOPE Scholarship

Bridget Terry Long
Journal of Human Resources, October 2004, XXXIX (4) 1045-1066; DOI: https://doi.org/10.3368/jhr.XXXIX.4.1045
Bridget Terry Long
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Abstract

This paper examines the effects of financial aid policies on the behavior of post-secondary institutions. Using the introduction of the Georgia HOPE Scholarship as a natural experiment, it investigates the impact of the policy on college pricing, institution aid, expenditures, and state appropriations. The results suggest that four-year colleges in Georgia, particularly private institutions, did respond by increasing student charges. In the most extreme case, colleges recouped approximately 30 percent of the scholarship award. As a result, the institutional responses reduced the intended benefit of the scholarship and increased the cost of college for nonrecipients.

  • Received July 2002.
  • Accepted July 2003.
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Journal of Human Resources
Vol. XXXIX, Issue 4
2 Oct 2004
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How do Financial Aid Policies Affect Colleges?
Bridget Terry Long
Journal of Human Resources Oct 2004, XXXIX (4) 1045-1066; DOI: 10.3368/jhr.XXXIX.4.1045

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How do Financial Aid Policies Affect Colleges?
Bridget Terry Long
Journal of Human Resources Oct 2004, XXXIX (4) 1045-1066; DOI: 10.3368/jhr.XXXIX.4.1045
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