To Apply or Not to Apply: FAFSA Completion and Financial Aid Gaps
SSRN Electronic Journal
2014
- 7Citations
- 3,225Usage
- 5Captures
- 1Mentions
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Example: if you select the 1-year option for an article published in 2019 and a metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019. If you select the 3-year option for the same article published in 2019 and the metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019, 2018 and 2017.
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Article Description
In the United States, college students must complete the Free Application for Student Federal Aid (FAFSA) to access all forms of federal aid. However, many eligible students do not apply and consequently forgo significant amounts of financial aid. Using data from the 1999-2000, 2003-2004, and 2007-2008 National Postsecondary Student Aid Survey, I examine characteristics that influence whether an eligible student fails to complete FAFSA, and how much financial aid non-applicants could have received. From a nationally representative sample, I find that 13.5 percent of eligible students who attend college do not complete FAFSA. These students tend to be lower to middle income, white, and male. Using propensity score matching, I find that each year, on average, applicants forgo $9,741.05 in total aid which aggregates to $24 billion. Forgone aid includes Pell Grants, subsidized student loans, work-study, and state aid programs.
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