A Retrospective of the Effect of Financial Aid on College and University Enrollment During a Period of Steady-State and Decline.

An examination of the effect of financial aid on college and university enrollment during a period of steady-state and decline is presented with a focus on the student's decision to go or not to go to college, to matriculate at a private or public college, to attend an in-state or out-of-state school, to transfer from a community college to a four-year college, or to go to graduate or professional school. Student financial aid is analyzed in terms of its effect on admissions policies, attrition and retention rates, stop-out rates, transfer rates, and graduate rates. Retrospective analysis is used to determine the effects, and literature related to student financial aid and published between 1970 and 1981 is reviewed. National, statewide, institutional, and districtwide studies are included. Most studies using a national or statewise base find financial aid significantly affects enrollment in American colleges and universities. Funding for both private and public higher education is ultimately tied to enrollment. Financial aid has been found to be a significant factor in the recruitment and retention processes, and it also helps students decide whether to attend a public or private institution. It will become even more important as institutions of higher education dip deeper into the lower socioeconomic groups in order to compensate for predicted enrollment deficits. With enrollments and financial aid decreasing, many private institutions will be hard pressed to find students unless the trend is reversed. Contains 21 references. (SM)