The Hidden Costs of Corroboration: Estimating the Effects of Financial Aid Verification on College Enrollment

Abstract

Every year, the U.S. Department of Education selects hundreds of thousands of low-income students to provide additional documentation to corroborate their financial aid eligibility in a process known as verification. Although many are concerned about the potential deleterious effects of being selected, to date, studies are limited to descriptive analyses. To fill this gap in the literature, we use population-level, multicohort data to estimate the effects of financial aid verification on initial college enrollment for recent high school graduates in Tennessee. An entropy balance weighting approach indicates that students selected for verification are 3.8 percentage points (4.9%) less likely to enroll in college with underserved populations and late Free Application for Federal Student Aid (FAFSA) filers most negatively affected.

Keywords

higher education finance educational policy econometric analysis policy analysis financial aid college access

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