Advertisement

Research in Higher Education

, Volume 54, Issue 4, pp 383–406 | Cite as

Financial Aid and Attainment Among Students in a State with Changing Demographics

  • Jacob P. K. Gross
  • Vasti Torres
  • Desiree Zerquera
Article

Abstract

Using event history analysis, this study investigated to what extent differentiated forms of aid affected the educational attainment of various student populations with particular interest on the Latinos/as within this emerging settlement state: Indiana. Findings suggest that the effects of aid are moderated by race and ethnicity. State grants, primarily need-based, played a significant if not modest role in encouraging persistence among Latino students, more so than peers from other racial/ethnic groups. No significant direct relationship was found between federal grants and loans for Latino students with respect to graduation.

Keywords

Latinos/as Financial aid Event history analysis Educational attainment State grants Need-based aid 

Notes

Acknowledgments

This research was supported in part by an Association for the Study of Higher Education/Lumina Foundation for Education Dissertation Fellowship. The authors wish to thank Don Hossler and Steve DesJardins for their critiques and suggestions on earlier versions of this manuscript as well as the detailed and generous feedback of two anonymous reviewers.

References

  1. Adelman, C. (1999). Answers in the tool box: Academic intensity, attendance patterns, and bachelor’s degree attainment. Jessup, MD: National Institute on Postsecondary Education, Libraries, and Lifelong Learning.Google Scholar
  2. Adelman, C. (2006). The toolbox revisited: Paths to degree completion from high school through college. Washington, DC: U.S. Department of Education.Google Scholar
  3. Allison, P. D. (1984). Event history analysis: Regression for longitudinal event data. Newbury Park, CA: Sage.Google Scholar
  4. Attinasi, L. C, Jr. (1989). Getting In: Mexican Americans’ perceptions of university attendance and the implications for freshman year persistence. The Journal of Higher Education, 60(3), 247–277.CrossRefGoogle Scholar
  5. Bean, J. P. (1980). Dropouts and turnover: The synthesis and test of a causal model of student attrition. Research in Higher Education, 12(2), 155–197.CrossRefGoogle Scholar
  6. Bean, J. P. (1982). Student attrition, intentions, and confidence: Interaction effects in a path model. Research in Higher Education, 17(4), 291–320.CrossRefGoogle Scholar
  7. Bean, J. P. (1985). Interaction effects based on class level in an explanatory model of college student dropout syndrome. American Educational Research Journal, 22(1), 35–64.CrossRefGoogle Scholar
  8. Bean, J. P., & Metzner, B. S. (1985). A conceptual model of nontraditional undergraduate student attrition. Review of Educational Research, 55(4), 485–540.CrossRefGoogle Scholar
  9. Blossfeld, H.-P., & Rohwer, G. (2002). Techniques of event history modeling: New approaches to causal analysis (2nd ed.). Mahwah, NJ: Lawrence Erlbaum.Google Scholar
  10. Braxton, J. M., & Lien, L. A. (2000). The viability of academic integration as a central construct in Tinto’s interactionalist theory of college student departure. In J. Braxton (Ed.), Reworking the student departure puzzle (pp. 11–28). Nashville, TN: Vanderbilt University Press.Google Scholar
  11. Brown, S. E., Santiago, D., & Lopez, E. (2003). Latinos in higher education: Today and tomorrow. Magazine of Higher Learning, 35(2), 40–47.CrossRefGoogle Scholar
  12. Cabrera, A. F., Castaneda, M. B., Nora, A., & Hengstler, D. (1992). The convergence between two theories of college persistence. The Journal of Higher Education, 63(2), 143–164.CrossRefGoogle Scholar
  13. Cabrera, A. F., Nora, A., & Castaneda, M. B. (1993). College persistence: Structural equations modeling test of an integrated model of student retention. The Journal of Higher Education, 64(2), 123–139.CrossRefGoogle Scholar
  14. Cabrera, A. F., Nora, A., Terenzini, P. T., Pascarella, E., & Hagedorn, L. S. (1999). Campus racial climate and the adjustment of students to college: A comparison between White students and African-American students. Journal of Higher Education, 70(2), 134–136.CrossRefGoogle Scholar
  15. Cabrera, A. F., Stampen, J. O., & Hansen, W. L. (1990). Exploring the effects of ability to pay on persistence in college. The Review of Higher Education, 13(3), 303–336.Google Scholar
  16. Calcagno, J. C., Crosta, P., Bailey, T., & Jenkins, D. (2007). Does age of entrance affect community college completion probabilities? Evidence from a discrete-time hazard model. Educational Evaluation and Policy Analysis, 29(3), 218–235. doi: 10.3102/0162373707306026.CrossRefGoogle Scholar
  17. Carter, D. F. (2006). Key issues in the persistence of underrepresented minority students. New Directions for Institutional Research, 2006(130), 33–46.CrossRefGoogle Scholar
  18. Cellini, S. R. (2008). Causal inference and omitted variable bias in financial aid research: Assessing solutions. Review of Higher Education, 31(3), 329–354.CrossRefGoogle Scholar
  19. Cerna, O. S., Pérez, P. A., & Sáenz, V. B. (2006). Exploring the aspirations and attributes of Latina/o college degree attainers. Paper presented at the annual conference of the Association for the Study of Higher Education, Anaheim, CA.Google Scholar
  20. Chen, R. (2012). Institutional characteristics and college student dropout risks: A multilevel event history analysis. Research in Higher Education, 53, 487–505.CrossRefGoogle Scholar
  21. Chen, R., & DesJardins, S. L. (2008). Exploring the effects of financial aid on the gap in student dropout risks by income level. Research in Higher Education, 49(1), 1–18.CrossRefGoogle Scholar
  22. Chen, R., & DesJardins, S. L. (2010). Investigating the impact of financial aid on student dropout risks: Racial and ethnic differences. The Journal of Higher Education, 82(2), 179–208.CrossRefGoogle Scholar
  23. DesJardins, S. L. (2001). Assessing the effects of changing institutional aid policy. Research in Higher Education, 42(6), 653–678.CrossRefGoogle Scholar
  24. DesJardins, S. L. (2003). Event history methods: Conceptual issues and an application to student departure from college. Higher Education: Handbook of Theory and Research, 18, 421–471.CrossRefGoogle Scholar
  25. DesJardins, S. L., Ahlburg, D. A., & McCall, B. P. (1994). Studying the determinants of student stopout: Identifying “true” from spurious time-varying effects. Paper presented at the Annual Forum of the Association for Institutional Research, New Orleans, LA.Google Scholar
  26. DesJardins, S. L., Ahlburg, D. A., & McCall, B. P. (1999). An event history model of student departure. Economics of Education Review, 18(3), 375–390.CrossRefGoogle Scholar
  27. DesJardins, S. L., Ahlburg, D. A., & McCall, B. P. (2002a). Simulating the longitudinal effects of changes in financial aid on student departure from college. The Journal of Human Resources, 37(3), 653–679.CrossRefGoogle Scholar
  28. DesJardins, S. L., Kim, D.-O., & Rzonca, C. S. (2003). A nested analysis of factors affecting bachelor’s degree completion. Journal of College Student Retention: Research, Theory and Practice, 4(4), 407–435.CrossRefGoogle Scholar
  29. DesJardins, S. L., McCall, B. P., Ahlburg, D. A., & Moye, M. J. (2002b). Adding a timing light to the “Tool Box”. Research in Higher Education, 43(1), 83–114.CrossRefGoogle Scholar
  30. Dowd, A. (2006). A research agenda for the study of the effects of borrowing and the prospects of indebtedness on students’ college-going choices Working Papers. Boston: New England Resource Center for Higher Education, University of Massachusetts.Google Scholar
  31. Doyle, W. R. (2006). Adoption of merit-based student grant programs: An event history analysis. Educational Evaluation and Policy Analysis, 28(3), 259–285.CrossRefGoogle Scholar
  32. Fry, R. (2004). Latino youth finishing college: The role of selective pathways. Washington, DC: Pew Hispanic Center.Google Scholar
  33. Fry, R. (2006). The changing landscape of American public education: New schools, new students. Washington, DC: Pew Hispanic Center.Google Scholar
  34. Gross, J. P. K., Cekic, O., Hossler, D., & Hillman, N. (2009). What matters in student loan default: A review of the research literature. Journal of Student Financial Aid, 39(1), 19–29.Google Scholar
  35. Heckman, J. J., & LaFontaine, P. A. (2007). The American high school graduation rate: Trends and levels. Cambridge, MA: National Bureau of Economic Research.Google Scholar
  36. Heller, D. E. (1997). Student price response in higher education: An update to Leslie and Brinkman. The Journal of Higher Education, 68(6), 624–659.CrossRefGoogle Scholar
  37. Hoachlander, G., Sikora, A. C., & Horn, L. (2003). Community college students: Goals, academic preparation, and outcomes (NCES 2003-164). Washington, DC: U.S. Department of Education, National Center for Education Statistics.Google Scholar
  38. Hossler, D., Ziskin, M., Gross, J. P. K., Kim, S., & Cekic, O. (2009). Student aid and its role in encouraging persistence. Higher Education: Handbook of Theory and Research, 24, 389–425.CrossRefGoogle Scholar
  39. Hurtado, S. (2002). Creating a climate of inclusion: Understanding Latino/a college students. In W. A. Smith, P. G. Altbach, & K. Lomotey (Eds.), The racial crisis in American higher education: Continuing challenges (Revised ed., pp. 121–158). Albany, NY: State University of New York Press.Google Scholar
  40. Ishitani, T. T. (2003). A longitudinal approach to assessing attrition behavior among first-generation students: Time-varying effects of pre-college characteristics. Research in Higher Education, 44(4), 433–449.CrossRefGoogle Scholar
  41. Ishitani, T. T., & DesJardins, S. L. (2002). A longitudinal investigation of dropout from college in the United States. Journal of College Student Retention: Research, Theory and Practice, 4(2), 173–201.CrossRefGoogle Scholar
  42. Ishitani, T. T., & Snider, K. G. (2004). Longitudinal effects of college preparation programs on college retention. Mullica Hill, NJ: Education Resource Information Center.Google Scholar
  43. Jaccard, J. (2001). Interaction effects in logistic regression. Newbury Park, CA: Sage.Google Scholar
  44. Johnson, K. M., & Lichter, D. T. (2008). Natural increase: A new source of population growth in emerging Hispanic destinations in the United States. Population and Development Review, 34(2), 327–346.CrossRefGoogle Scholar
  45. Kim, D. (2004). The effect of financial aid on students’ college choice: Differences by racial groups. Research in Higher Education, 45, 43–70.CrossRefGoogle Scholar
  46. Leung, K.-M., Elashoff, R. M., & Afifi, A. A. (1997). Censoring issues in survival analysis. Annual Review of Public Health, 18(1), 83–104.CrossRefGoogle Scholar
  47. Martinez, M., & Fernández, E. (2004). Latinos at community colleges. New Directions for Student Services, 105, 51–62.CrossRefGoogle Scholar
  48. McLendon, M., Heller, D., & Young, S. (2005). State postsecondary policy innovation. The Journal of Higher Education, 76, 363–400.CrossRefGoogle Scholar
  49. Metz, G. W. (1999). Indiana higher education: The Hoosier commitment to localism and vocationalism. Community College Journal of Research & Practice, 23(1), 43–59.CrossRefGoogle Scholar
  50. Millard, A. V., & Chapa, J. (2004). Apple pie and enchiladas: Latino newcomers in the rural Midwest. University of Texas Press.Google Scholar
  51. Mishel, L., & Roy, J. (2006). Accurately assessing high school graduation rates. Phi Delta Kappan, 88(4), 287.Google Scholar
  52. Nora, A. (1990). Campus-based aid programs as determinants of retention among Hispanic community college students. Journal of Higher Education, 61(1), 312–331.CrossRefGoogle Scholar
  53. Nora, A., & Cabrera, A. F. (1996). The role of perceptions of prejudice and discrimination on the adjustment of minority students to college. The Journal of Higher Education, 67(2), 119–148.CrossRefGoogle Scholar
  54. Parson, M., Palacios, J., & Guzman, J. C. (2011). Latinos in North Central Indiana: A historical account of their settlement 1990–2009. Goshen, IN: Goshen College.Google Scholar
  55. Pascarella, E. T., & Terenzini, P. T. (1980). Predicting freshman persistence and voluntary dropout decisions from a theoretical model. The Journal of Higher Education, 51(1), 60–75.CrossRefGoogle Scholar
  56. Pérez, P. A., & McDonough, P. M. (2008). Understanding Latina and Latino college choice: A social capital and chain migration analysis. Journal of Hispanic Higher education, 7(3), 249–265.CrossRefGoogle Scholar
  57. Perna, L. W. (2000). Differences in the decision to attend college among African American, Hispanics, and Whites. Journal of Higher Education, 71(2), 117–141.CrossRefGoogle Scholar
  58. Person, A. E., & Rosenbaum, J. E. (2006). Chain enrollment and college enclaves: Benefits and drawbacks of Latino college students’ enrollment decisions. New Directions for Community Colleges, 2006, 51–60.CrossRefGoogle Scholar
  59. Santiago, D. A., & Andrade, S. J. (2010). Emerging Hispanic-Serving Institutions (HSIs): Serving Latino Students. Excelencia in Education, 28.Google Scholar
  60. Santiago, D. A., & Cunningham, A. F. (2005). How Latino students pay for college: Patterns of financial aid in 2003–04. Washington, DC: Excelencia in Education/Institute for Higher Education Policy.Google Scholar
  61. Schwarz, S. (2008). Early commitment of student financial aid: Perhaps a modest improvement. In S. Baum, M. McPherson, & P. Steel (Eds.), The effectiveness of student aid policies: What the research tells us. New York: The College Board.Google Scholar
  62. Singer, J. D., & Willett, J. B. (1993). It’s about time: Using discrete-time survival analysis to study duration and the timing of events. Journal of Educational Statistics, 18(2), 155–195.CrossRefGoogle Scholar
  63. Singer, J. D., & Willett, J. B. (2003). Applied longitudinal data analysis: Modeling change and event occurrence. Oxford: Oxford University Press.CrossRefGoogle Scholar
  64. Spady, W. G. (1970). Dropouts from higher education: An interdisciplinary review and synthesis. Interchange, 1(1), 64–85.CrossRefGoogle Scholar
  65. Spady, W. G. (1971). Dropouts from higher education: Toward an empirical model. Interchange, 2(3), 38–62.CrossRefGoogle Scholar
  66. St. John, E. P. (1992). Workable models for institutional research on the impact of student financial aid. Journal of Student Financial Aid, 22(3), 13–26.Google Scholar
  67. St. John, E. P., Cabrera, A. F., Nora, A., & Asker, E. H. (2000). Economic influences on persistence reconsidered: How can finance inform the reconceptualization of persistence models? In J. Braxton (Ed.), Reworking the student departure puzzle (pp. 29–47). Nashville, TN: Vanderbilt University Press.Google Scholar
  68. St. John, E. P., Gross, J. P. K., Musoba, G., & Chung, A. S. (2006). Postsecondary encouragement and academic success: Degree attainment by Indiana’s Twenty-First Century Scholars. In E. P. St. John (Ed.), Public policy and equal educational opportunity: School reforms, postsecondary encouragement, and state policies on postsecondary education (Vol. 21). New York: AMS Press.Google Scholar
  69. St. John, E. P., Musoba, G. D., Simmons, A. B., & Chung, C.-G. (2002). Meeting the access challenge: Indiana’s Twenty-first Century Scholars Program new agenda series. Indianapolis, IN: Lumina Foundation for Education.Google Scholar
  70. St. John, E. P., Paulsen, M. B., & Carter, D. F. (2005). Diversity, college costs, and postsecondary opportunity: An examination of the financial nexus between college choice and persistence for African Americans and Whites. Journal of Higher Education, 76(5), 545–569.CrossRefGoogle Scholar
  71. St. John, E. P., Paulsen, M. B., & Starkey, J. B. (1996). The nexus between college choice and persistence. Research in Higher Education, 37(2), 175.CrossRefGoogle Scholar
  72. State of Indiana Commission for Higher Education. (2000). Student information system instructions: 1999–2000 Academic year. Indianapolis, IN: State of Indiana Commission for Higher Education.Google Scholar
  73. Stinebrickner, R., & Stinebrickner, T. R. (2003). Understanding educational outcomes of students from low-income families: Evidence from a liberal arts college with a full-tuition subsidy. The Journal of Human Resources, 38(3), 591–617.CrossRefGoogle Scholar
  74. Suro, R., & Fry, R. (2005). Leaving the newcomers behind. In R. H. Hersh & J. Merrow (Eds.), Declining by degrees: Higher education at risk (pp. 169–183). New York: Palgrave MacMillan.Google Scholar
  75. Suro, R., & Tafoya, S. (2004). Dispersal and concentration: Patterns of Latino residential settlement. Washington, DC: Pew Hispanic Center.Google Scholar
  76. Swail, W. S., Cabrera, A. F., & Lee, C. (2004). Latino youth and the pathway to college. Washington, DC: Pew Hispanic Center.Google Scholar
  77. Swail, W. S., Cabrera, A. F., Lee, C., & Williams, A. (2005). Pathways to the bachelor’s degree for Latino students. Washington, DC: The Educational Policy Institute.Google Scholar
  78. Tierney, W. G. (1992). An anthropological analysis of student participation in college. The Journal of Higher Education, 63(6), 603–618.CrossRefGoogle Scholar
  79. Tinto, V. (1975). Dropout from higher education: A theoretical synthesis of recent research. Review of Educational Research, 45(1), 89–125.CrossRefGoogle Scholar
  80. Tinto, V. (1982). Limits of theory and practice in student attrition. The Journal of Higher Education, 53(6), 687–700.CrossRefGoogle Scholar
  81. Tinto, V. (1988). Stages of student departure: Reflections on the longitudinal character of student leaving. The Journal of Higher Education, 59(4), 438–455.CrossRefGoogle Scholar
  82. Tinto, V. (1993). Leaving college: Rethinking the causes and cures of student attrition (2nd ed.). Chicago: The University of Chicago Press.Google Scholar
  83. Torres, V. (2004). The diversity among us: Puerto Ricans, Cuban Americans, Caribbean Americans, and Central and South Americans. New Directions for Student Services, 2004(105), 5–16.CrossRefGoogle Scholar
  84. Torres, V. (2006). A mixed method study testing data-model fit of a retention model for Latino/a students at urban universities. Journal of College Student Development, 47(3), 299–317.CrossRefGoogle Scholar
  85. Torres, V., & Delgado-Romero, E. (2008). Defining Latino/a identity through late adolescent development. In K. L. Kraus (Ed.), Lenses: Applying lifespan development theories in counseling (pp. 363–388). Boston: Lahaska Press.Google Scholar
  86. Torres, V., & Zerquera, D. (2012). Hispanic-serving institutions: Patterns, predictions, and implications for informing policy discussions. Journal of Hispanic Higher Education, 11(3), 259–278.Google Scholar
  87. U.S. Census Bureau. (2011a). Table 3. Detailed years of school completed by people 25 years and over by sex, age groups, race and Hispanic origin: 2010. Retrieved from http://www.census.gov/hhes/socdemo/education/data/cps/2010/tables.html. Accessed 20 Feb 2011.
  88. U.S. Census Bureau. (2011b). The Hispanic Population: 2010. Retrieved from http://www.census.gov/prod/cen2010/briefs/c2010br-04.pdf.
  89. Wallace, L., & Zerquera, D. (2010, Nov). Mandates and play dates: An exploration of community college partnerships and transfer trends in Indiana. Paper presented at the Annual Meeting of the Association for the Study of Higher Education, Indianapolis, IN.Google Scholar
  90. Wienke, A., Lichtenstein, P., & Yashin, A. I. (2003). A bivariate frailty model with a cure fraction for modeling familial correlations in diseases. Biometrics, 59(4), 1178–1183.CrossRefGoogle Scholar
  91. Willett, J. D., & Singer, J. D. (1991). From whether to when: New methods for studying student dropout and teacher attrition. Review of Educational Research, 61(4), 407–450.CrossRefGoogle Scholar
  92. Willett, J. D., & Singer, J. D. (1995). It’s deja vu all over again: Using multiple-spell discrete-time survival analysis. Journal of Educational and Behavioral Statistics, 20(1), 41–67.Google Scholar
  93. Zalaquett, C. P. (2006). Study of successful Latina/o students. Journal of Hispanic Higher Education, 5(35), 35–47.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2012

Authors and Affiliations

  • Jacob P. K. Gross
    • 1
  • Vasti Torres
    • 2
  • Desiree Zerquera
    • 2
  1. 1.Educational Leadership, Foundations, and Human Resource EducationUniversity of LouisvilleLouisvilleUSA
  2. 2.Educational Leadership and Policy StudiesIndiana UniversityBloomingtonUSA

Personalised recommendations