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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 [Two-Year College Students Sample]

Highlights

  • The study's objective was to examine the impact of the Wisconsin Scholar Grant (WSG) on long-term education outcomes for two-year college students. The authors investigated similar research questions for another contrast, the profile of which can be found here. 
  • This study was a randomized controlled trial that assigned college students to the treatment or control group. The authors examined the effects of WSG using data from the 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 did not find any significant relationships between receiving WSG funds and education outcomes. 
  • 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. However, the study did not find any statistically significant effects. 

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 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 public high school in Wisconsin. Student 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 college 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 two-year branch campuses in the University of Wisconsin System (UW) and students enrolled in one of the 16 two-year public institutions in the Wisconsin Technical College System (WTCS). The study followed students in four cohorts in the UW and one cohort in the WTCS, with the first cohort of students from the 2008-2009 academic year through the 2017-2018 academic year. The total sample size, across all cohorts was 3,883 two-year college students (1,058 treatment and 2,825 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 WGS 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 did not find any statistically significant relationships between receiving WSG funds and completing a degree, still being enrolled after 9 years, or transferring to a four-year university.  

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 any estimated effects are attributable to the Wisconsin Scholar Grant, and not to other factors. However, the study did not find any statistically significant effects. 

Reviewed by CLEAR

May 2024

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