2009
DOI: 10.1007/s11162-009-9148-5
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A Conceptual Analysis of State Support for Higher Education: Appropriations Versus Need-Based Financial Aid

Abstract: In this paper, we use economic concepts to examine the choice that states make between giving appropriations to public colleges or need-based financial aid to students. We begin by reviewing the economic justification for state support for higher education. Next, we introduce a simple economic model for comparing and contrasting appropriations and need-based aid for supporting higher education. We then provide a graphical depiction of the model and simulate the effects of each policy on access to higher educat… Show more

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Cited by 33 publications
(5 citation statements)
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“…However, transitions to these innovative approaches to financing public higher education do not always go smoothly (Prescott 2010). Recent studies (e.g., Toutkoushian and Shafiq 2010) indicate that in order to maximize student participation in postsecondary education states need to provide need-based financial support to students rather than appropriations to state colleges. If state appropriations continue to decline either absolutely or as a share of all revenues, the study institution might need to consider alternative tuition practices for in-state students.…”
Section: Discussionmentioning
confidence: 99%
“…However, transitions to these innovative approaches to financing public higher education do not always go smoothly (Prescott 2010). Recent studies (e.g., Toutkoushian and Shafiq 2010) indicate that in order to maximize student participation in postsecondary education states need to provide need-based financial support to students rather than appropriations to state colleges. If state appropriations continue to decline either absolutely or as a share of all revenues, the study institution might need to consider alternative tuition practices for in-state students.…”
Section: Discussionmentioning
confidence: 99%
“…Also, the university could establish a student financial aid program which aims to give financial help for students to pay their tuition fees and living expenses. The financial aid program is a common practice in higher education institutions where the university will offer immediate funds and financial resources for college students in need (Toutkoushian & Shafiq, 2010). Besides financial issues, the international students also demand that the teaching quality of the lecturers be improved (Georg, 2009).…”
Section: Discussionmentioning
confidence: 99%
“…Some programs were still “on the books” but did not have funding to make actual awards (e.g., Connecticut’s Roberta B. Willis Scholarship during the financial years ending 2016–2019). We tried to use data for years when the policy was not influenced by funding constraints to examine the policy design effects of the merit-aid programs on community college students; however, historically, financial aid policies were substantially influenced by public funding availability (McLendon et al, 2014; Toutkoushian & Shafiq, 2010). Similarly, our study focused on state-administered merit-aid programs; but in many states, merit-aid was administered at the institutional level (e.g., University of Alabama, 2022).…”
Section: Methodsmentioning
confidence: 99%