Measuring the impact of income and financial aid offers on college enrollment decisions

This study analyzes the impact of demographic, socioeconomic, and financial factors on the enrollment behavior of accepted college applicants. The receipt of financial aid had a positive impact on the enrollment decisions of accepted applicants. For every $1,000 increase in the amount of aid offered, the probability of enrollment increased between 1.1% and 2.5%. Grants and loans had the expected positive impact on enrollment, but work study did not entice prospective students unless it was packaged with some grant or loan assistance. Upper-income applicants were less likely to enroll at this institution regardless of financial aid incentives.