Financial Aid Can Help Low-Income Students Finish Two-Year College Programs. Research Brief. RB-10069

With open admission policies, reasonable tuition rates, and convenient locations, community colleges are a good choice for many who want to improve their career outlooks or explore college to see whether a four-year program is for them. Yet, no matter their reason for entering, most students do not leave with a degree. For many years, federal and state governments have tried to increase college completion among low-income students through targeted, need-based financial aid. Although state budgets for financial aid have increased, state appropriations to support colleges and help keep tuition low have stagnated. To build evidence for state policy, RAND researchers examined the Wisconsin Grant program for technical college students. This study focused on students who applied for aid to attend one of the 16 technical colleges that make up the Wisconsin Technical College System (WTCS) and did so at any time during the 2010-2011 to 2014-2015 school years. The study sought to answer two questions: (1) Did Wisconsin Grant aid help increase graduation rates from technical colleges?; and (2) How might financial aid policy be adjusted to improve graduation for those who most need aid? Given the existence of federal aid programs, it is unclear whether the state should provide additional help to the poorest families or complement that aid with help to middle-income families. This study therefore investigated where Wisconsin Grants had their largest impact.