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Experimental evidence on the impacts of need‐based financial aid: Longitudinal assessment of the Wisconsin Scholars Grant [Four-Year University Students Sample] (Anderson et al., 2020)

  • Review Protocol

Review Guidelines

Absence of conflict of interest.

Citation

Anderson, D. M., Broton, K. M., Goldrick‐Rab, S., & Kelchen, R. (2020). Experimental evidence on the impacts of need‐based financial aid: Longitudinal assessment of the Wisconsin Scholars Grant. Journal of Policy Analysis and Management, 39(3), 720-739. https://doi.org/10.1002/pam.22190 [Four-Year University Students Sample]

Highlights

  • The study's objective was to examine the impact of the Wisconsin Scholar Grant (WSG) on long-term education outcomes for four-year university students. The authors investigated similar research questions for another contrast, the profile of which can be found here. 
  • This study was randomized controlled trial that assigned university students to the treatment or control group. The authors examined the effects of the WSG using data from Free Application for Federal Student Aid (FAFSA) applications, high school records, and the National Student Clearinghouse. The authors used a statistical model to compare the outcomes of treatment and control group members. 
  • The study found a positive statistically significant relationship between receiving WSG funds and degree completion within 5 years of initial enrollment, and a negative statistically significant relationship between receiving the funds and completing within 9 years of initial enrollment. The study also found a significant positive relationship between receiving WSG funds and completing a degree in STEM (Science, Technology, Engineering, and Math). 
  • This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to the Wisconsin Scholar Grant, and not to other factors.  

Intervention Examined

Wisconsin Scholar Grant (WSG)

Features of the Intervention

The WSG is a privately funded need-based financial aid package offered to eligible students in the state of Wisconsin. Eligible students are entered into a lottery run by state administrators. Selected students receive grants amounting up to $3500 per year for university students and $1800 per year for two-year college students. Students may elect to renew the grant for up to 5 years. After selection and acceptance, the grant is integrated into the student’s financial aid package. To be eligible for the WSG funds, students must be under 22 years old and enrolled full-time at a University of Wisconsin or Wisconsin Technical College System institution within 3 years of graduating from a Wisconsin public high school. Students must have filled out a FAFSA application and received a Pell grant and have at least $1 in remaining unmet need. To renew the grant, students must continue to be enrolled full time and maintain satisfactory academic progress. 

Features of the Study

This study used a randomized controlled trial that assigned university students to a treatment or control group. Students who submitted a FAFSA application and received financial aid were automatically entered into the randomization pool. State administrators conducted a lottery to select students to receive WSG funds. The study sample was comprised of students enrolled at one of the 13 universities within the University of Wisconsin system. The study followed four cohorts of students with the first cohort of students from the 2008-2009 academic year through the 2017-2018 academic year. The total sample size was 16,810 four-year university students (2,220 treatment and 14,590 control). Students in the treatment group received WSG funds and those in the control group did not receive WSG funds. The authors examined the effects of WSG using data from FAFSA applications, high school records, and the National Student Clearinghouse. The authors used a statistical model to compare the outcomes of treatment and control group members. The model used an intent-to-treat design, which includes all study participants in the analytic sample regardless of whether they received any services or not. 

Findings

Education and skills gains 

  • The study found a positive significant relationship between receiving WSG funds and completing a degree within 5 years of initial enrollment. However, the study found a negative significant relationship between receiving WSG funds and completing a degree within 9 years of initial enrollment. 
  • The study also found a positive significant relationship between receiving WSG funds and completing a degree in a STEM field (Science, Technology, Engineering, and Math).  
  • The study found that men were significantly more likely than women to complete a degree within 6 years and more likely to receive a STEM degree. 

Considerations for Interpreting the Findings

Although the study was a well-implemented randomized controlled trial, this study has several issues that should be considered when interpreting the findings.  Only 87% of the students who were selected to receive the WSG funds received them. It is possible that the program’s impact on those who received WSG funds might be higher than the study’s estimates. Additionally, study authors only had access to educational attainment data through the 2016-2017 academic year. Due to this, the sample size decreases in each year after 6 years. This means that the analyses for degree completion in 7 years only includes data for students in cohorts 1, 2, and 3. Degree completion in 8 years only includes data for cohorts 1 and 2. Degree completion in 9 years only includes data for cohort 1.  

Causal Evidence Rating

The quality of the causal evidence presented in this study is high because it was based on a well-implemented randomized controlled trial. This means we are confident that the estimated effects are attributable to the Wisconsin Scholar Grant, and not to other factors. 

Reviewed by CLEAR

May 2024