| The rising costs of higher education have shifted the responsibility of paying for college from the federal government to students. One of the consequences has been an increase in borrowing from federal student loan programs. This dissertation examined the relationship between federal financial aid and year to year persistence at The City University of New York. The specific objectives were to identify the background characteristics, high school achievement and college experiences of financial aid recipients and to determine if borrowing increased or decreased the likelihood of persistence.; A year to year persistence model was used by this study based upon demand theories of economics and theories of student persistence. The model, developed by Edward P. St. John (1992) and tested by Patricia Somers (1992, 1995, 1996), views persistence as a function of four factors: background characteristics, high school achievement, college experiences and financial aid. Using logistic regression to track a cohort for two academic years, seven versions of the model were examined to compare differences in the amount of aid, type of aid, and package combinations received. The results indicated that; (1) College experience factors had the most statistically significant positive influence on persistence for both academic years. Students who enrolled for more credits and maintained higher grade point averages were more likely to persist. (2) Type and amount of aid that influenced persistence differed from year to year. For example, during the first year of enrollment, receipt of grants positively influenced persistence and receipt of loans negatively influenced persistence. During the second year, receipt of federal grants decreased the likelihood of persistence and borrowing from federal student loan programs, alone or in combination with other aid programs, increased the likelihood of persistence. (3) There were statistically significant differences in persistence rates for students with different background characteristics. But, minority students who maintained higher grade point averages, enrolled for more credits, and received financial aid were more likely to persist after two years than other students. (4) Debt was not a problem for students in this population. Of the students who received financial aid, less than 15% borrowed from federal student loan programs each year. |
