Measuring the Impact of Financial Factors on College Persistence

Abstract

An earlier study examined the impact of family income and financial aid on the enrollment decisions of accepted applicants at a single institution of higher learning. A companion analysis was undertaken here to analyze the effect these financial factors had on students' persistence at the same institution during the comparable time period. Surprisingly, financial aid did not have a significant impact on freshmen persistence. However, students from families with greater incomes tended to persist. Academic performance was the overwhelmingly most significant factor affecting a freshmen's decision to continue into the sophomore year, as poor performing students tended to drop out.