Abstract
Even need-based financial aid programs typically require recipients to meet Satisfactory Academic Progress (SAP) requirements. We examine the consequences of failing SAP for community college entrants in one state, using regression discontinuity and difference-in-difference designs. We find heterogeneous academic effects in the short term, but, after six years, negative effects on academic and labor market outcomes dominate. Declines in credits attempted are 2–3 times as large as declines in credits earned, suggesting that SAP may increase aid efficiency. But students themselves are worse off, and the policy exacerbates inequality by pushing out low-income students faster than their higher-income peers.
This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.
