Report: Aid Like A Paycheck

Posted by MDRC on July 17, 2017

Evidence shows that financial aid increases college enrollment. For many students at low-cost community colleges, this aid is intended to cover more than tuition and fees; after those are paid, the remainder is paid out, or “refunded,” to students to help with their living expenses while they are enrolled in school. Often, however, the total amount of aid does not come close to covering the cost of attendance for full-time students. Many still struggle to find the means to support their studies and pay their bills, and the majority of students enrolled at two-year public institutions report feeling financial stress related to paying for school.

Most colleges distribute financial aid refund amounts to students in one or two lump sums during the term. Aid Like A Paycheck is a study of an alternative approach, in which financial aid refunds are disbursed biweekly, with the goal of helping students stretch their financial aid (including federal Pell Grants, state aid, and loans) to cover expenses throughout the term. MDRC is conducting a mixed-methods study of biweekly disbursements at two community colleges in the metropolitan area of Houston, Texas. The study includes qualitative research on the program’s implementation and a randomized controlled trial to rigorously estimate the impacts of the policy on students’ academic and financial outcomes.

http://www.mdrc.org/sites/default/files/ALAP_Interim_Report_2017.pdf