Institutional Aid and Student Persistence: An Analysis of the Effects of Institutional Financial Aid at Public Four-Year Institutions

Abstract

This study examines the effects of institutional fi nancial aid on year-to-year persistence for a cohort of fi rst-time, fi rst-year students at three large, doctorate-granting public universities. Though bil- lions of dollars are spent each year on institutional aid, much of the research to date on student persistence does not consider its effects on student departure. Using data from a statewide student unit record database, the effects of institutional aid on persistence were modeled using logistic regression. Findings suggest that institutional fi nancial aid has a positive but modest effect on persisting. Interestingly, the effects of aid were greater for men than for women, all else being equal.