Allison Ambrose, PhD Illinois State University Student Characteristics of Merit Aid Recipients: Structural and Human Agency Determinants Allison Ambrose, PhD Illinois State University

Problem Current Practice: The increasing use of merit aid (both institutional and public funds) Potential Cost: Decreased opportunities for access to higher education, especially for underrepresented groups (Orfield, 2002; Heller, 2002)

AID MATTERS: AID MATTERS: In encouraging a student go attend college (St. John, 1990; St. John & Noell, 1989; Heller, 1997) AID MATTERS: Differently for different types of students (Schwartz, 1986; St. John, 1990; Jackson, 1989)

THUS: It is important to understand the many complexities surrounding the use of merit aid THIS STUDY: Examines the types of students, to which institutional and state sponsored merit aid is going as well as the student characteristics that determine the receipt of various amounts of these types of aid. ADDRESSES the GAP: Lack of up-to-date research that reveals, nationally, the students who receive merit aid.

A Unique Perspective Sociological Lens in terms of 2 categories of variables: Human Agency Variables (related to a student’s academic background) Structural Variables (related to a student’s family social background)

Human Agency – The Efficacy of Human Action (Sewell, 1992): A student has the power to control attributes associated with academics in order to increase amounts of merit aid. GPA Standardized Test Scores Student Academic Expectations Student Attendance in State of Residence

Research Questions 1a)  Do human agency variables related to a student's academic background predict the amount of institutional merit aid received? 1b)  Do human agency variables related to a student's academic background predict the amount of state sponsored merit aid received?

Structure– Reproduces regardless of individual differences A student has very little power to change their social existence due to the status into whey they are born, which could affect the amount of merit aid a student receives Race Family Income Parental Education Level Gender

Research Questions 2a)  Do human agency variables predict the amount of institutional merit aid received after controlling for structural variables related to a student's family social background? 2b)  Do human agency variables predict the amount of state sponsored merit aid received after controlling for structural variables related to a student's family social background?

METHODOLOGY Secondary Data Analysis -- National Postsecondary Student Aid Study of 2003-04. Descriptive Statistics on the variables of interest -- provides evidence about the distribution of merit aid by student type. Regression Analysis – 2 steps Human agency variables as independent variables regressed on a) amounts of institutional merit aid received and b) amounts of state sponsored merit aid received Structural variables as independent variables regressed on a) and b) above will be added in step 2

Research Questions 1a and 1b Regression Results Independent Variables Institutional Merit Aid State Sponsored Merit Aid B se β t GPA 4.52*** 1.06 .067 4.257 3.03*** .63 .138 4.783 Standardized Test Score 965.2*** 71.55 .215 13.490 156.44*** 46.01 .099 3.40 Educational Expectations 192.35*** 52.24 .055 3.682 62.08 34.53 .050 1.798 In-State Residence -1280.49*** 148.27 -.128 -8.636 N/A Notes: (1) For institutional merit aid, R = 0.291, R² = 0.085, F = 96.731 (2) For state sponsored merit aid, R = 0.217, R² = 0.047, F = 15.831, ***p<.001

Research Questions 2a and 2b Regression Results Independent Variables Institutional Merit Aid State Sponsored Merit Aid B se β t GPA 3.95*** 1.07 .059 3.691 2.93*** .64 .135 4.605 Standardized Test Score 996.78*** 74.58 .222 13.365 25.39** 48.25 .079 2.599 Educational Expectations 167.93*** 52.41 .048 3.204 41.92 34.98 .034 In-State Residence -1272.98*** 148.90 -.127 -8.549 N/A Gender (male = 1) -478.59*** 123.97 -.058 3.860 10.45 81.12 .004 .129 Race (white = 1) -453.41** 165.05 -.040 -2.638 -111.53 104.81 -.029 -1.064 Parents’ education 9.56 26.37 .006 .362 48.38** 16.61 .085 2.913 Parents’ Income .003* .001 .036 2.316 .046 1.618 Notes: (1) For institutional merit aid, R = 0.300, R² = 0.090, F = 51.882 (2) For state sponsored merit aid, R = 0.241, R² = 0.058, F = 9.852, *p<.05, **p<.01, ***p<.001

Results: After controlling for structural variables, human agency variables still predict a fair amount of both types of merit aid received. Institutions are more merit sensitive in awarding aid than states. Institutions appear to be using merit aid for enrollment management purposes. Intent of rewarding students for academic achievement is being met by state programs Meritocratic intent of merit aid is further validated (high association between GPA , test scores and merit aid) Merit aid is not just rewarding the privileged classes of male and white (further validates meritocratic intent) Structural variables had little influence on agency variables in predicting amounts of merit aid received Descriptive analyses indicate potential inequities may still exist

Institutional Merit Aid State Sponsored Merit Aid Descriptive Statistics: Recipients of Merit Aid (dependent undergraduates at 4-year institutions) STRUCTURAL VARIABLES Institutional Merit Aid State Sponsored Merit Aid NPSAS All Gender: Female 58.2 % 55.7% 53.7% Race: White 78.3% 75.8% 71.2% Parents with BA + 61.7% 59.8% 58.1% Parents’ Income level > $90,000 30.8% ($75,250 mean) 29.6% ($75,190 mean) 30.1% ($73,508 mean)

Institutional Merit Aid State Sponsored Merit Aid Descriptive Statistics: Recipients of Merit Aid (dependent undergraduates at 4-year institutions) AGENCY VARIABLES Institutional Merit Aid State Sponsored Merit Aid NPSAS All In-State 69.7% 99.0% 77.0% Expected Education BA+ 81.8% 82.4% 78.1% GPA above 3.0 72.8% (3.23 mean) 67.4% (3.15 mean) 51.7% (2.92 mean) Standardized Test Score in top quartile 27.4% (mean ACT = 24.7) 23.4% (mean ACT = 24.3) 25.6% (mean ACT = 22.8)

Amounts of Merit Aid Average Amount Institutional Merit Aid State Sponsored Merit Aid Male $4269* $2418 Female $4675* White $4534 $2410 Other Races $4363 $2454 In State $4041* N/A Out of State $5301* * Mean Difference Significant at .001

Amounts of Merit Aid Average Amount Institutional Merit Aid State Sponsored Merit Aid Parents with HS Diploma $3749** $2080** Parents with Post BA $4951** $2682** Parents make less than $29,000 $4072** $2385 Parents make $90,000 + $5001** $2693 Expect less than BA $2029** $995 Expect above a MA $5018** $2568 * Mean Difference Significant at .001 ** Mean Difference Significant at .05 level

Policy Implications: Merit aid is clearly meritorious in intent Rewards merit vs. reinforces privilege in society State programs meet goals of rewarding achievement Need to also consider other determinants of receipt of merit aid Study knowledge helps in crafting and evaluating new policy Importance of encouraging academic achievement

Policy Implications Evidence of enrollment management Evaluate institutional aid policy Aid balances commitment to access and meritocratic ideals Interesting possibilities when considering new aid policy Must always consider how best to spend limited funds

References Heller, D.E. (2002a). State merit aid scholarship programs: An introduction. In D.E. Heller & P. Marin (Eds.), Who should we help? The negative social consequences of merit scholarships (pp. 15-24). Cambridge, MA: The Civil Rights Project at Harvard University. Heller, D.E. (1997). Student price response in higher education: An update to Leslie and Brinkman. Journal of Higher Education, 68 (6), 624-659 Jackson, G.A. (1989). Responses of Black, Hispanic, and White Students to Financial Aid: College Entry Among Recent High School Graduates. College Park, MD: National Center for Postsecondary Governance & Finance, U. of Maryland.

References (Cont.) Orfield, G. (2002). Foreword. In D.E. Heller & P. Marin (Eds.), Who should we help? The negative social consequences of merit scholarships (pp. xi-xv). Cambridge, MA: The Civil Rights Project at Harvard University Schwartz, J.B. (1986). Wealth neutrality in higher education: The effects of student grants. Economics of Education Review, 5(2), 107-117 Sewell, W.H, Jr. (1992). A theory of structure: Duality, agency and transformation. The American Journal of Sociology, 98(1), 1-29

References (Cont.) St. John, E.P. (1990). Price response in enrollment decision: An analysis of the high school and beyond sophomore cohort. Research in Higher Education, 31(2), 161-176. St. John, E.P., & Noell, J. (1989). The effects of student financial aid on access to higher education: An analysis of progress with special consideration of minority enrollment. Research in Higher Education, 30(6), 563-581.