The Varying Impacts of Merit-Aid Policy Design on Enrollment, Retention, and Graduation at Public Four-Year Colleges and Universities

This study examines whether and which aspects of statewide merit-aid policies influence students’ enrollment, retention, and completion outcomes at public four-year institutions, before exploring the influence of discontinuing merit aid on student outcomes. Using a novel dataset capturing details of merit-based aid policies for public four-year institutions over nearly two decades, we find suggestive evidence that merit-aid adoption is related to postsecondary enrollment, retention, and completion outcomes, with considerable variation among student populations and certain policy designs. Exploratory analyses pertaining to the influence of discontinuing statewide merit aid reveal a null influence on postsecondary enrollment, retention, and graduation outcomes.