Does institutional aid compensate for or comply with state policy?

William R. Doyle, Jennifer A. Delaney, Blake Alan Naughton

Research output: Contribution to journalArticle


To what extent does state policy for student financial aid affect the distribution of institutional aid awarded to students at public institutions? Using data from the National Postsecondary Student Aid Survey we employ a Tobit model to investigate the relationship between student characteristics, including family income and academic qualifications, and the amount of student financial aid awarded from institutional sources at public masters' and bachelors' degree granting institutions. We then ask if the institutional aid is awarded in a manner that complements or compensates for the student financial aid policy in the state. The results support our hypothesis that state policy for student financial aid affects the distribution of institutional aid, but instead of institutional compensation for state policy, we observe what appears to be compliance.

Original languageEnglish (US)
Pages (from-to)502-523
Number of pages22
JournalResearch in Higher Education
Issue number5
StatePublished - Aug 1 2009
Externally publishedYes


  • Higher education
  • Institutional aid
  • Policy
  • Student financial aid
  • Tobit model

ASJC Scopus subject areas

  • Education

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