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Social and Behavioral Sciences Commons

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Economics

2010

Illinois Wesleyan University

Higher Education Policy

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Full-Text Articles in Social and Behavioral Sciences

Predicting Community College Tuition And Enrollments And Simulating The Initial Effects Of President Obama's American Graduation Initiative, Allison Frederick Jun 2010

Predicting Community College Tuition And Enrollments And Simulating The Initial Effects Of President Obama's American Graduation Initiative, Allison Frederick

Undergraduate Economic Review

This paper will identify the effects of supply and demand side factors on community college enrollment quantities and tuition prices and predict the initial effects of President Obama’s American Graduation Initiative. This bill proposes $12 billion of government spending, through grants and financial aid, in order to increase the number of community college graduates by 5 million over the next ten years. Limitations regarding the endogeneity of government appropriations prevents the forecasting of government funding increases; however, the model predicts that financial aid increases from the American Graduation Initiative will increase community college enrollments by over half a million.