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Evaluation of the Pell Grant Experiments Under the Experimental Sites Initiative

NCEE Evaluation Division Postsecondary, Adult Education, and Choice Studies
Program: Higher Education Act
Award amount: $2,941,098
Awardee:
Social Policy Research Associates, Mathematica
Year: 2012
Duration: 8 years 3 months (09/01/2012 - 12/01/2020)
Project type:
Effectiveness, Impact
Contract number: ED-IES-12-C-0097

Background

Federal Pell grants are considered the foundation of higher education financial aid for low-income students. However, under current rules, otherwise income-eligible students who already have a bachelor's degree (BA) or who want to enroll in short-term (less than 15 weeks and 600 hours) programs are restricted from obtaining these grants. Given unemployment rates above 8.5 percent in 2011, and reports of unfilled openings for skilled jobs in some occupations, postsecondary institutions called for expanding Pell grants to help fill the skill training gap for low-income workers. In response, the Office of Federal Student Aid (FSA), under the Experimental Sites Initiative authorized by section 487A(b) of the Higher Education Act of 1965, conducted demonstrations to test the impacts of eliminating the BA restriction (Experiment 1) and significantly lowering the minimum clock hours/duration restriction (Experiment 2) for students interested in occupational training in high-demand fields. The Institute of Education Sciences (IES) designed and oversaw a rigorous evaluation of these experiments.

Project Activities

Research question

  • Does expanding Pell grant eligibility to include income-eligible students with a bachelor's degree (Experiment 1) and/or to cover shorter-term programs (Experiment 2) increase enrollment in and completion of postsecondary programs? Did offering experimental Pell Grants affect the types of programs that students enrolled in or completed?
  • Does expanding Pell grant eligibility to these groups affect federal financial aid receipt? Does offering experimental Pell Grants affect students' use of federal student loans? What percentage of students who were offered experimental Pell Grants used them?
  • Does expanding Pell grant eligibility to these groups improve employment rates and earnings?

Structured Abstract

Design

Between the 2012 and 2017 award years, 46 postsecondary institutions volunteered to participate and identified nearly 3,000 students eligible for the experiments. Students were randomly assigned to be offered or not offered experimental Pell Grant funds in their financial aid package. Using student administrative records collected from participating postsecondary institutions and the Office of Federal Student Aid, the study examined program enrollment, completion, and financial aid receipt. A supplemental analysis used data from the National Directory of New Hires to explore impacts on employment and earnings.

Key findings

  • Offering Pell Grants for short-term occupational training programs to students with low income who have a bachelor's degree increased program enrollment and completion by about 20 percentage points.  
  • Offering Pell Grants for very short-term occupational training programs increased program enrollment and completion by about 10 percentage points. 
  • More than half of students offered experimental Pell Grants used them, receiving an average grant amount of $1,800; they were just as likely as those not offered the grants to also use federal student loans. 
  • Despite boosting program enrollment and completion, offering experimental Pell Grants did not increase employment or earnings in the medium to long term. 

People and institutions involved

IES program contact(s)

Daphne Garcia

Associate Research Scientist
Postsecondary, Adult Education, and Choice Studies

Products and publications

A report, titled The Effects of Expanding Pell Grant Eligibility for Short Occupational Training Programs: Results from the Experimental Sites Initiative, was released in December 2020.

An updated report, titled The Effects of Expanding Pell Grant Eligibility for Short Occupational Training Programs: New Results on Employment and Earnings from the Experimental Sites Initiative, was released in November 2024. 

Questions about this project?

To answer additional questions about this project or provide feedback, please contact the program officer.

 

Tags

Career and Technical EducationFinancial AidPostsecondary Education

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Questions about this project?

To answer additional questions about this project or provide feedback, please contact the program officer.

 

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