You are here:

The influence of financial aid in leveling group differences in graduating from elite institutions

Economics of Education Review Volume 26, Number 3 ISSN 0272-7757 Publisher: Elsevier Ltd


This paper assesses the effectiveness of financial aid in promoting the persistence of black and Hispanic students admitted to the most selective colleges and universities in the United States to complete their college education. To explore whether more dollars of aid enhance graduation, the analysis separates two constructs—aid eligibility and aid amount—when assessing their influence on graduation likelihood of these students. Using the College & Beyond (C&B) database and implementing an IV/LATE analytical strategy, I find that although need-based aid eligibility is negatively related to graduation likelihood, aid amounts exert a positive influence on graduation, conditional on eligibility for aid. Among types of aid, grants and scholarships have the most positive effect on graduation. The results also indicate that financial aid amounts help equalize initial racial and ethnic differences in graduation likelihood. Minority students’ graduation likelihood is found to be more sensitive to the amount of financial resources they secure, especially in the form of grants and scholarships, than that of their white counterparts.


Alon, S. The influence of financial aid in leveling group differences in graduating from elite institutions. Economics of Education Review, 26(3), 296-311. Elsevier Ltd. Retrieved September 26, 2020 from .

This record was imported from Economics of Education Review on March 1, 2019. Economics of Education Review is a publication of Elsevier.

Full text is availabe on Science Direct:



View References & Citations Map

These references have been extracted automatically and may have some errors. Signed in users can suggest corrections to these mistakes.

Suggest Corrections to References