Nick Hillman Assistant Professor Educational Leadership & Policy University of Utah

1. Economic diversity among selective colleges: measuring the enrollment impact of “no-loan” programs Nick Hillman Assistant Professor Educational Leadership & Policy University of Utah

2. Purpose Given the mismatch between low-income students’ academic achievement and their educational destinations, I wondered if no-loan programs might be a promising solution (or part of the problem) of reducing socio-economic stratification in highly-selective postsecondary education. Origins| Characteristics | Design | Impact | Recommendations

3. Defining “no-loan” programs • Replace (or significantly reduce) loans with grantsin students financial aid packages • Institutional grant aid, could be funded or unfunded • Loan Replacement Grants (Lips, 2011) • No-loan vs. loan cap • Institutional discretion over how they allocate these resources Origins| Characteristics | Design | Impact | Recommendations

4. Number of institutions adopting “no-loan” programs 69 total: 44 private four-year 25 public four-year Senate hearings on endowment spending (5% payout) Origins| Characteristics | Design | Impact | Recommendations

5. Distribution of “no-loan” programs by state Origins| Characteristics | Design | Impact | Recommendations

6. Common attributes • No-loan institutions tend to be characterized as follows: • Low socio-economic diversity • Highly selective admissions standards • High SAT scores • High tuition, high aid pricing models • Extremely wealthy (privates in particular) Origins| Characteristics | Design | Impact | Recommendations

7. Low Pell enrollments, high selectivity Origins| Characteristics | Design | Impact | Recommendations

8. Low Pell enrollments, high SAT scores Origins| Characteristics | Design | Impact | Recommendations

9. High tuition, high aid pricing models $- $10,000 $20,000 $30,000 $40,000 All public $6,268 Average tuition four-year Average institutional colleges and $1,379 grant aid per universities undergraduate Public no-loan $8,203 colleges and $3,178 universities All private $23,251 four-year colleges and $7,876 universities Private no-loan $37,509 colleges and $22,491 universities Origins| Characteristics | Design | Impact | Recommendations

10. Extremely wealthy (Total endowment values, $billions, 2008) Public no - loan institutions, $21.2 n=25 All other public four year colleges, Private n=461 no-loan $42.4 institutions, $138.0 n=44 All other private four year colleges, n=889 $78.2 Origins| Characteristics | Design | Impact | Recommendations

11. Design and implementation of no-loan programs • No all institutions target to “low-income” students • All publics target to “low” and “low to moderate” income groups • See Lips (2011) for more details n=16 n=19 n=27 Origins| Characteristics | Design | Impact | Recommendations

12. Research design • Data sources • IPEDS • Pell enrollment files • 2002 to 2009 • Analytical technique • Fixed effects regression • Difference-in-differences • Comparison groups • 50% selectivity • $100,000/FTE endow. • Public flagship • Outcome variable • Percent of undergraduates receiving Pell Grants • Controls • Endowment per FTE, tuition, minority enrollment, SAT scores, undergraduate enrollment, duration of no-loan program Origins| Characteristics | Design | Impact| Recommendations

13. Key findings Both sectors Public sector Private sector Origins| Characteristics | Design | Impact| Recommendations

14. Recommendations • Targeteligibility to Pell-eligible students • Actively publicizethe programs and reach out to low-income students • Avoid “skimming” to increase socio-economic diversity • Federal/state incentive to encourage more colleges to adopt similar programs Origins| Characteristics | Design | Impact| Recommendations

15. Thank you! Copies, data sources, and additional information available by request. Look for forthcoming Institute for Higher Education Policy report. Nick Hillman nick.hillman@utah.edu

16. Additional material:Characteristics of no-loan institutions and their comparison groups