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Higher Education: Restructuring Student Aid Could Reduce Low-Income Student Dropout Rate

HEHS-95-48 Published: Mar 23, 1995. Publicly Released: Mar 23, 1995.
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Highlights

Pursuant to a congressional request, GAO reviewed how student financial aid affects low-income students' dropout rates, focusing on whether: (1) the timing of loan and grant aid influences students' dropout rates; and (2) restructuring federal grant programs could improve low-income students' dropout rates.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
If Congress is interested in increasing the number of low-income students who stay in college, it may wish to direct the Department of Education to conduct a pilot program of frontloading federal grants at a limited number of 4-year schools chosen to generally typify such schools. The pilot should cover a 4- to 5-year college cycle and enable an assessment of potential benefits and costs and a decision regarding the approach's broader applicability. This action may require Congress to grant the Department authority to conduct such a pilot.
Closed – Not Implemented
The Department of Education offered a similar measure in its proposed amendments to the reauthorization of the Higher Education Act of 1965, but the Congress did not include it in reauthorization, and congressional staff indicated that no further action is contemplated.

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Topics

Aid for educationAttrition ratesColleges and universitiesDisadvantaged personsEducational grantsGrant administrationHigher educationMinoritiesStudent financial aidStudent loans