Education Commons^™

The Effect Of State Financial Aid Policies On College Completion, Sheri E. Ragland

Walden Dissertations and Doctoral Studies

In 2008, state legislatures provided $6 billion in financial aid to 2 million low-income young adults. When low-income young adults receive state financial aid and do not complete college, states lose their investment because fewer people with degrees will contribute to the state's economy. Declining states' budgets have led to (a) the rising cost of higher education, (b) state merit-based aid that has targeted nonminority students from affluent backgrounds, and (c) state need-based aid that has targeted students further along in their college career. State need- and merit-based aid may contribute to the lack of college completion among low-income freshman …