The effects of tuition and financial aid on the enrollment decision at a state university
- 192 Downloads
Students admitted to more than one institution of higher education face one of the most difficult decisions of their lives. The determinants of these enrollment decisions are crucially important to the yield of qualified students from the number admitted to colleges and universities. This paper specifies an empirical model of the enrollment decision for students admitted both to Rutgers University and to at least one alternate college. Our estimates of the parameters of the model with a binary choice multiple regression equation show that students base their enrollment decision on the relative quality of the schools, their own abilities and family resources, and the net costs of the schools. The results are relevant to university tuition and financial aid policies. The general methodology is replicable by other institutions seeking information on the determinants of the enrollment decision.
Unable to display preview. Download preview PDF.
- Aldrich, J., and Nelson, F. (1984).Linear Probability, Logit, And Probit Models. Beverly Hills: Sage Publications.Google Scholar
- Bishop, J. (1977). The effect of public policies on the demand for higher education.The Journal of Human Resources 12: 286–307.Google Scholar
- Chapman, D. (1981). A model of student choice.Journal of Higher Education 52: 490–505.Google Scholar
- Chapman, R. G., and Jackson, R. (1987).College Choices of Academically Able Students: The Influence of No-Need Financial Aid and Other Factors. New York: The College Board.Google Scholar
- Ehrenberg, R., and Sherman, D. (1984). Optimal financial aid policies for a selective university.The Journal of Human Resources 19: 202–230.Google Scholar
- Kmenta, J. (1986).Elements of Econometrics. 2nd ed. New York: Macmillan.Google Scholar
- Lovejoy's Educational Guides (1985).Lovejoy's College Guide, 17th ed. New York: Monarch Press.Google Scholar
- Manski, C. F., and Wise, D. A. (1983).College Choice in America. Cambridge, Mass.: Harvard University Press.Google Scholar
- Peterson's Guides (1985).Peterson's Annual Guide to Undergraduate Study. Princeton, N.J.Google Scholar
- Schwartz, J. B. (1985). Student financial aid and the college enrollment decision: The effects of public and private grants and interest subsidies.Economics of Education Review 4: 129–144.Google Scholar
- Sichel, D., McKenzie, D., and Mims, R. (1983). Facilitating enrollment planning with a binary choice econometric model. Ann Arbor: Office of Academic Planning and Analysis, University of Michigan.Google Scholar
- Tierney, M. L. (1980). The impact of financial aid on student demand for public/private higher education.Journal of Higher Education 51: 527–545.Google Scholar