Transcript Slide 1

Paying Parents for Performance:
The Performance-Based Scholarship
Demonstration in Ohio
Paulette Cha
Reshma Patel
MDRC
MDRC
[email protected]
[email protected]
Society for Research on Educational Effectiveness 2010 Conference:
Research into Practice
Washington, D.C.
Thursday, March 4, 2010
Outline
I.
Project Background
II.
The Program
III. Program Impacts
IV. Summary and Next Steps
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The Problem: Many Community College
Students Do Not Persist
Among students who intend to earn a credential or
transfer to a four-year institution, only half meet that goal
within 6 years.
Major obstacles:
 Competing work and/or family obligations
 Insufficient financial aid
 Inadequate students support services
 Lack of academic preparation
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Why performance-based scholarships?
Performance-based scholarships:
 Need-based grants
 Contingent on academic performance and/or student
services
 Paid directly to students
 Paid in addition to other financial aid, such as Pell
Goals:
 Address unmet need
 Incentivize behavior
 Enable students to have more time on task
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Literature Review
 Student Achievement and Retention (STAR) Project:
 Randomized experiment with three treatment groups
 Found an increase in credits earned, an increase in
GPA, and a reduction in academic probation for women
 Angrist, Joshua et al. 2009. “Incentives and Services
for College Achievement"
 Georgia HOPE Project:
 Merit-based aid program in Georgia
 Evidence of increased college attendance and shift
toward 4-year institutions
 Dynarski, Susan. 2004. “The New Merit Aid” and
2000. “Hope for Whom? Financial Aid for the Middle
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Class and Its Impact on College Attendance”
Literature Review (continued)
 H&R Block FAFSA Experiment:
 Randomized experiment with two treatment groups
 Initial findings suggest increased FAFSA submission
and enrollment in college
 Bettinger, Eric P. et al. 2009. “The Role of
Simplification and Information in College Decisions:
Results from the H&R Block FAFSA Experiment”
 Wisconsin Scholars Longitudinal Study:
 Randomized study on the impact of private need-based
financial aid
 Currently underway under the direction of Sara
Goldrick-Rab and Douglas N. Harris
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Literature Review (continued)
 Opening Doors Louisiana
 Randomized experiment testing the impact of a
performance-based scholarship on low-income parents
 Study found that program group students were more
likely to enroll in college and earned more credits
 Richburg-Hayes, Lashawn et al. 2009. “Rewarding
Persistence: Effects of a Performance-Based
Scholarship Program for Low-Income Parents
The Performance-Based Scholarship in Ohio: A
Replication of Opening Doors Louisiana study
 Similarities: TANF Funding, target population
 Differences: State need-based aid, economy
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Program Model
Student-Level Random Assignment Evaluation
conducted at three Ohio institutions:
 Lorain County Community College
 Owens Community College
 Sinclair Community College
 Enrolled 2,285 students in total: 60% in the program
group, 40% in the control group
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Scholarship Model
 Award Benchmarks:
 Full-time award: $900 per semester or $600 per quarter
for a “C” or better in 12+ credits
 Part-time award: $450 per semester or $300 per quarter
for a “C” or better in 6-11 credits
 Maximum total scholarship was $1,800 for all schools
 One-time, lump-sum payment at end of term
 Program duration: 2 semesters / 3 quarters
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Eligibility
 Parent of a minor child
 Expected Family Contribution = 0
 18+ years of age
 U.S. citizen and Ohio resident
 Not incarcerated
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Early Analysis
 Fall 2008 cohort only: 1,300 study students, about
60% of total sample
 Follow-up period covers duration of scholarship
period: 2 semesters / 3 quarters
 No post-program analysis
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Baseline Characteristics
Characteristic
Fall 2008
Cohort
Female (%)
89.6
Married (%)
21.1
Has one child or more (%)
99.8
Average age (years)
30.1
Race (%)
White
Black, non-Hispanic
Hispanic / Latino
Other
54.8
31.3
8.7
5.1
Employed at baseline (%)
49.8
Household receiving gov’t benefits (%)
70.4
Sample Size
1,329
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Scholarship Receipt
 Almost three-quarters of students received an award
in the first term of the scholarship
 Over 60% of students received an award in the
second term of the scholarship
 Over 80% of students received an award in at least
one term of the scholarship
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Financial Aid Outcomes
Financial Aid Awarded Program
Control
Difference
4,504
4,164
340
1,699
1,754
-55
Performance-Based
Scholarship
676
0
676
Other grants
654
659
-5
Subsidized loans
779
901
-122
***
Unsubsidized loans
650
765
-115
**
Federal work study
45
84
-39
*
Total amount ($)
Federal Pell grant
***
***
Statistical significance levels are indicated as: *** = 1 percent; ** = 5
percent; * = 10 percent.
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Academic Outcomes:
1st Program Term
Outcome
Program
Control
Difference
Registered (%)
97.4
97.1
0.3
Enrolled full-time (%)
61.4
64.3
-2.3
Credits attempted
9.6
9.7
0.0
Credits earned
7.4
6.7
0.7
***
Statistical significance levels are indicated as: *** = 1 percent; ** = 5
percent; * = 10 percent.
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Academic Outcomes:
2nd Program Term
Outcome
Program
Control
Difference
Registered (%)
84.2
82.5
1.7
Enrolled full-time (%)
55.4
49.1
6.3
**
Credits attempted
8.5
8.0
0.6
**
Credits earned
6.4
5.5
1.0
***
Statistical significance levels are indicated as: *** = 1 percent; ** = 5
percent; * = 10 percent.
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Academic Outcomes:
Program Year
Outcome
Program
Control
Difference
Registered (%)
98.3
97.8
0.5
Credits attempted
20.0
19.5
0.5
Credits earned
15.3
13.4
2.0
***
Earn 24 or more
credits
22.0
15.4
6.6
***
Statistical significance levels are indicated as: *** = 1 percent; ** = 5
percent; * = 10 percent.
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Summary
Reduction in educational debt: Program group students
were awarded $237 fewer loan dollars
Increased number of credits attempted: Program
students attempted more credits in 2nd program term
Increased number of credits earned: Program students
earned 2 credits more over the first program year
No impact to date on term-to-term persistence: Both
groups persisted at high rates
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Next Steps
Ohio is one of the states being studied in a wider
demonstration testing variations of performance-based
scholarships at seven colleges and one intermediary:
 Target group
 Dollar amount and duration of scholarships
 Counseling and service components
All programs are random assignment evaluations
Early reports for each state in the coming months, and
final reports in 2011 – 2012
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Questions?
Paulette Cha
Operations Associate
[email protected]
Reshma Patel
Research Analyst
[email protected]
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