Treffer: Work-Study Financial Aid and Student Outcomes: Evidence from Community Colleges in Texas. Policy Brief

Each year as tuition costs increase, more students rely on financial aid to attend institutions of higher education. Financial aid packages, which are created to encourage individual investments in education, consist of a variety of types of funding assistance and aid packages, and are highly tailored to individual students. In general, financial aid includes need- based grants, merit-based awards, and subsidized loans. A mix of federal, state and local governments, as well as private organizations, finance these programs and many are contingent on student actions or characteristics. The ramifications of the diversity of funding programs within aid packages has received little attention from policy makers. This is unfortunate because certain programs may have behavioral consequences for students beyond decreasing the cost of attendance. For example, federal work- study funding provides funds to students conditional on their commitment to working while in school. This job and time requirement may affect student performance in positive or negative ways. Analyzing the efficacy of the federal work-study program is important because it may have adverse effects on student outcomes if working involves a substantial time trade-off with time spent learning. At the same time, working while in school may provide a means for students to gain knowledge and skills that reinforce their academic experience and prepare them for success in academics and the labor market.

ERIC