PT  - JOURNAL ARTICLE
AU  - Bridget Terry Long
TI  - How do Financial Aid Policies Affect Colleges?
AID  - 10.3368/jhr.XXXIX.4.1045
DP  - 2004 Oct 02
TA  - Journal of Human Resources
PG  - 1045--1066
VI  - XXXIX
IP  - 4
4099  - http://jhr.uwpress.org/content/XXXIX/4/1045.short
4100  - http://jhr.uwpress.org/content/XXXIX/4/1045.full
SO  - J Hum Resour2004 Oct 02; XXXIX
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.