Dongbin Kim

1
Drop out or Transfer out Unraveling the impact
of financial aid on students college departure
pattern
Supported by the NASFAA Sponsored Research Grant

• Dongbin Kim
• Research and Policy Analyst
• National Association of Independent Colleges and
  Universities

2
Research Questions

• Does financial aid influence students decision
  to drop out of college or transfer to another
  college?
• Does the relationship between financial aid and
  students departure behavior differ by
  institutional control?

3
Data Source

• Beginning Postsecondary Student Survey
  (BPS95/96-00/01)
• Students who began their postsecondary education
  in 4-year institutions and who have a bachelors
  degree goal

4
Research Methods Multinomial Logit Model
Transferred
Left without degree
Attained degree
5
College Leaving Pattern
6
College Leaving Pattern By Public vs. Private
4-year
7
College Leaving Pattern By Race
Left without degree
Transferred
Attained degree
16.0
29.6
54.4
White
Public
26.5
32.7
40.8
Black
17.6
37.2
45.2
Hispanic
9.4
25.4
65.3
Asian
8.3
23.3
68.4
White
Private
29.4
49.8
Black
20.9
17.6
28.1
54.3
Hispanic
10.1
18.5
71.3
Asian
8
College Leaving Pattern By Academic Merit
Left without degree
Transferred
Attained degree
23.8
39.4
36.8
Low
Public
12.1
30.9
57.1
Middle
8.5
16.6
74.9
High
14.5
36.7
48.8
Low
Private
8.1
24.9
67.0
Middle
4.6
15.9
79.5
High
9
College Leaving Pattern By Income
Left without degree
Transferred
Attained degree
20.6
32.6
46.9
Low
Public
18.5
31.2
50.3
Middle
12.7
28.2
59.1
High
16.4
32.3
51.3
Low
Private
11.7
22.0
66.3
Middle
6.3
21.2
72.5
High
10
College Leaving Pattern By Grant
11
College Leaving Pattern By Loan
12
College Leaving Pattern The Amount of Grant
13
College Leaving Pattern The Amount of Loan
14
The Impact of Grant on College Leaving Pattern
Reference group No grant
15
The Impact of Loan on College Leaving Pattern
Reference group No loan
16
Why Students Leave a College
Transferred
Left without degree
(-)
Income
()
Black
(-)
Fulltime attendance
(-)
Fulltime attendance
(-)
Social integration
(-)
Satisfaction with college cost
(-)
Academic integration
(-)
College GPA
(-)
College GPA
(-)
Tuition
(-)
Satisfaction with intellectual growth, prestige,
college cost
(-)
Institutional Selectivity (selective)
(-)
Tuition
For the students at private 4-year
institutions.
17
Why Students Leave a College
Transferred
Left without degree
(-)
First generation
(-)
Female
(-)
Fulltime attendance
()
First generation
(-)
Social integration
(-)
Fulltime attendance
(-)
Academic integration
(-)
Academic integration
(-)
Satisfaction with prestige
(-)
College GPA
(-)
Tuition
(-)
College GPA
(-)
Institutional Selectivity (selective)
(-)
Institutional Selectivity (highly selective)
(-)
Institutional Selectivity (highly selective)
For the students at public 4-year institutions.
18
Implications

• Loan versus Grant
• Transfer out versus Drop out
• Public versus Private 4-year institutions