Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

New study shows simplifying financial aid process improves college access for low-income students

28.09.2009
More low-income students would make it to college if changes were made to streamline the complicated financial aid process, according to a groundbreaking study released today by researchers at the Harvard Graduate School of Education, Stanford University School of Education, the University of Toronto, and the National Bureau of Economic Research.

The new study, conducted by Stanford University Associate Professor Eric Bettinger, Harvard Graduate School of Education Professor Bridget Terry Long, and University of Toronto Associate Professor Philip Oreopoulos, tracked nearly 17,000 low-income individuals and determined that cumbersome financial aid forms and lack of information about higher education costs and financial aid prevented access to higher education.

At H&R Block offices during the 2008 tax season, the researchers invited individuals aged 17 to 30, who earned less than $45,000 annually in Ohio and North Carolina, to participate and randomly assigned them to one of three groups. For one group of participants, employees helped fill out the 102-question Free Application for Federal Student Aid (FAFSA) that serves as the critical application and gatekeeper for federal aid, as well as most state and institutional aid.

In order to streamline the process, the researchers prepopulated the application with already-collected tax information and then helped participants answer remaining questions. This significantly reduced the FAFSA form completion time from 13 hours to less than 10 minutes. Participants were also given personalized information about their financial aid options. Following the application process, the researchers tracked the progress of participants who were given aid information alongside those participants who did not receive help to determine whether streamlining the application process and providing information increased college enrollment.

"Making college aid applications almost effortless to complete had an extremely powerful impact on the number of low-income students who made it to college," said Oreopoulos. "For high school seniors, just helping their parents fill out the financial aid form and apply increased college enrollment rates by 30 percent."

Other program outcomes included:

The program increased college enrollment by 20 percent for young adults already out of high school with particularly large results for those with annual incomes less than $22,000.

The program increased the percentage who received a federal grant by 33 percent for high school seniors with positive effects also for older adults.

The program increased FAFSA submissions by 39 percent for seniors in high school; 186 percent for independent students who had never been to college; and 58 percent for independent students who had previously attended college.

The program also resulted in FAFSA applications being filed significantly earlier than those in the control group: over one month earlier for high school students and almost three months earlier for independent students. This allowed students to maximize their state and institutional financial aid awards in additional to federal aid.

On the other hand, the researchers said that participants who were only given information about aid (without help with the FAFSA) did not have higher aid application submission rates than those who did not receive any help.

"This suggests that simply informing individuals about their aid eligibility does not appear to improve college access," said Bettinger, "The real barrier is the complexity in actually filling out the form and finding the time to complete it. We were able to provide individuals with accurate aid information and submit the form for them, which greatly increased their chances of accessing higher education."

Long said the study proves there are simple, efficient ways to streamline the FAFSA process that can increase its visibility and prevent the misinformation, missed deadlines, and complexity that block some students from going to college.

"In most cases, two-thirds of the FAFSA form can be completed using tax information, so in less than 10 minutes, we were able to address a major educational problem and had a substantial impact on aid applications and college enrollment," Long said. "The next step is to think beyond one company to how we can implement these lessons on a larger scale, perhaps in schools or with community organizations, and ideally by changing the aid application process at the federal level."

This research has informed deliberations of the U.S. Department of Education and the White House regarding simplifying the financial aid process. Just this summer, U.S. Secretary of Education Arne Duncan announced plans to streamline FAFSA and explore ways to transfer information directly from the Internal Revenue Service to an online financial aid application. The researchers note that such a change should substantially reduce the time necessary to complete the FAFSA form and improve the accuracy of the information submitted. Additional outreach and assistance, such as that provided to study participants, would also greatly improve the current system of financial aid.

The project was funded with support from the Bill & Melinda Gates Foundation, the National Science Foundation, the Spencer Foundation, the Kaufman Foundation, and the Institute of Education Sciences.

For more information on the program and research results, please see "The Role of Simplification and Information in College Decisions: Results from the H&R Block FAFSA Experiment," National Bureau of Economic Research Working Paper at

http://www.nber.org.

Contact:
Jill Anderson
News Officer
Harvard Graduate School of Education
617-496-1884
April Kemick
Media Relations Officer
University of Toronto
416-978-5949

April Kemick | EurekAlert!
Further information:
http://www.utoronto.ca
http://www.nber.org

More articles from Business and Finance:

nachricht How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung

nachricht Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Significantly more productivity in USP lasers

In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.

Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...

Im Focus: Shape matters when light meets atom

Mapping the interaction of a single atom with a single photon may inform design of quantum devices

Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...

Im Focus: Novel silicon etching technique crafts 3-D gradient refractive index micro-optics

A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.

Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...

Im Focus: Quantum Particles Form Droplets

In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.

“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...

Im Focus: MADMAX: Max Planck Institute for Physics takes up axion research

The Max Planck Institute for Physics (MPP) is opening up a new research field. A workshop from November 21 - 22, 2016 will mark the start of activities for an innovative axion experiment. Axions are still only purely hypothetical particles. Their detection could solve two fundamental problems in particle physics: What dark matter consists of and why it has not yet been possible to directly observe a CP violation for the strong interaction.

The “MADMAX” project is the MPP’s commitment to axion research. Axions are so far only a theoretical prediction and are difficult to detect: on the one hand,...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ICTM Conference 2017: Production technology for turbomachine manufacturing of the future

16.11.2016 | Event News

Innovation Day Laser Technology – Laser Additive Manufacturing

01.11.2016 | Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

 
Latest News

Will Earth still exist 5 billion years from now?

08.12.2016 | Physics and Astronomy

Oxygen can wake up dormant bacteria for antibiotic attacks

08.12.2016 | Health and Medicine

Newly discovered bacteria-binding protein in the intestine

08.12.2016 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>