| College choice models based on economic studies have usually assumed all students have access to the information required to make a rational decision regarding postsecondary enrollment. However, such studies have neglected to take into account the critical issue of transaction costs leading to overly simplistic models of college choice. Transaction costs are the time and money needed to access, sort, and evaluate pertinent information.;This study examined how overnight regional and national college tours involving Los Angeles area secondary students dramatically lowered the transaction costs associated with the college search process. Participants reflected the ethnic and economic diversity of the Los Angeles basin. Between the years, 1993 and 2000, over four hundred students toured colleges throughout California and the transcontinental United States.;Surveys were mailed to all past tour participants and several hundred other comparison students with similar academic profiles. Using quantitative research methods, that included step-wise multiple regression, supplemented qualitative material, the tours were found to positively impact the college search process. That conclusion was based upon several important findings.;First, tour participants applied to almost 50 percent more colleges than members of the control group. Second, they enrolled in colleges with higher persistence and degree attainment rates than students from two comparison groups. Third, they persisted and attained bachelor's degrees at rates higher than those reported for a national sample of postsecondary students. Fourth, and possibly the most important finding of this study regarded financial aid. When compared against a national sample of four-year college enrollees, campus tour students participated in loan and work study programs at more than twice the rate of the government sample in more than one instance. Tour participation appeared to positively encourage students to accept financial aid awards that included loans and work study to help cover the expenses associated with earning a bachelor's degree. |
