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Concerns over rising college tuition and slow economic growth have brought renewed attention to the role of federal and state financial aid programs in opening access to education. Despite a large body of literature examining the effects of grant aid on four-year and public two-year college enrollment, for-profit colleges--particularly the vast majority that offer two-year degrees and certificates--have largely been ignored. Using panel data methods and a new administrative data set of for-profit colleges operating in California between 1989 and 2003, I assess the impact of the federal Pell Grant program, the G.I. Bill, and California's Cal Grant program on the net number of for-profit colleges per county. The results suggest that for both Pell and Cal Grants, increases in the per-student maximum award encourage for-profit entry. This relationship is particularly strong in counties with high adult poverty levels, where more students are eligible for aid. Further, these gains in the private sector do not appear to come at the expense of the public sector. Rather, public community colleges also experience enrollment gains as the generosity of Pell and Cal Grants increases, although this reaction appears to be weaker than the reaction of for-profits. (Contains 1 figure, 6 tables, and 24 footnotes.)

By promoting articulation agreements between high schools and community colleges, Tech-Prep programs aim to smooth the transition to college for the middle majority of US high school students. This paper employs a family fixed effects approach to assess the effectiveness of Tech-Prep programs in increasing educational attainment. Using data from six rounds of the 1997 NLSY and controlling for both selection and within-family spillovers, I find that Tech-Prep programs help participants complete high school and encourage enrollment in two-year colleges. On the other hand, these gains come at the expense of four-year college enrollment, suggesting that Tech-Prep programs may divert students from four-year to two-year colleges in the years immediately following high school. While Tech-Prep programs appear to increase overall educational attainment, they may be falling short of their goal of promoting college enrollment among the middle majority.