New paper on the impact of parental financial aid on student success

Post date: Jan 15, 2013 4:35:33 PM

A new paper on the impact of parental financial aid on student success is presented in the NY Times today:

The actual journal article is reachable through the UM Library here:

Here's the abstract:

"Evidence shows that parental financial investments increase college attendance, but we

know little about how these investments shape postsecondary achievement. Two theoretical

frameworks suggest diametric conclusions. Some studies operate from a more-is-more

perspective in which children use calculated parental allocations to make academic progress.

In contrast, a more-is-less perspective, rooted in a different model of rational behavior,

suggests that parental investments create a disincentive for student achievement. I adjudicate

between these frameworks, using data from nationally representative postsecondary datasets

to determine what effect financial parental investments have on student GPA and degree

completion. The findings suggest seemingly contradictory processes. Parental aid decreases

student GPA, but it increases the odds of graduating—net of explanatory variables and

accounting for alternative funding. Rather than strategically using resources in accordance

with parental goals, or maximizing on their ability to avoid academic work, students are

satisficing: they meet the criteria for adequacy on multiple fronts, rather than optimizing their

chances for a particular outcome. As a result, students with parental funding often perform

well enough to stay in school but dial down their academic efforts. I conclude by highlighting

the importance of life stage and institutional context for parental investment."

I haven't read the article in detail yet...

Cheers,

Tim