RT Journal Article
SR Electronic
T1 How do Financial Aid Policies Affect Colleges?
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 1045
OP 1066
DO 10.3368/jhr.39.4.1045
VO 39
IS 4
A1 Long, Bridget Terry
YR 2004
UL http://jhr.uwpress.org/content/39/4/1045.abstract
AB 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.