Is School out for the Summer? The Impact of Year-Round Pell Grants on Academic and Employment Outcomes of Community College Students

• Published in: Education finance and policy Vol. 15; no. 2; pp. 241 - 269
• Main Author: Liu, Vivian Yuen Ting
• Format: Journal Article
• Language: English
• Published: MIT Press 01.03.2020
• Subjects: Associate Degrees; College Credits; College Transfer Students; Community Colleges; Credentials; Educational Certificates; Federal Aid; Graduation Rate; Grants; Low Income Students; Student Characteristics; Student Financial Aid; Student Loan Programs; Summer Programs; Summer Schools; Two Year College Students; Wages
• ISSN: 1557-3060
• DOI: 10.1162/edfp_a_00277

Despite having been the largest source of financial aid to low-income college students in the United States, the traditional Pell Grant had one major limitation: If students enrolled in two semesters full-time, they would not have had any tuition support for the summer term of the same academic year. The year-round Pell (YRP) was implemented in the academic years 2009-10 and 2010-11 to provide a second Pell Grant to students who enrolled in more than twenty-four credits prior to the third semester and in at least six credits during the summer term. Using a state administrative dataset from a community college system, this paper uses a difference-in-differences approach to examine the credit, credential completion, and labor market outcomes resulting from the YRP. The study finds that for each $1,000 of additional YRP grant funding, summer enrollment increases by 28 percentage points, diploma completion rates increase by 1.6 percentage points, and third-year earnings from college entry increase by $200. For YRP-eligible students who started in a short-term program, the gains are a 2 percentage point higher certificate attainment rate, 3.6 percentage point increase in associate degree completion, and no effect on four-year transfer rates.