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THE PREDICTABILITY OF COLLEGE FINANCIAL AID OFFERS: EVIDENCE FROM THE CLASS OF 1972
Author(s) -
Barnes Gary T.,
Neufeld John L.
Publication year - 1980
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1980.tb01229.x
Subject(s) - tobit model , predictability , logit , predictive power , logistic regression , disbursement , economics , explanatory power , finance , actuarial science , class (philosophy) , econometrics , business , computer science , statistics , mathematics , philosophy , epistemology , artificial intelligence
Two aid predictor models (binomial logit/regression and Tobit) were fitted to the subset of aid applicants from the National Longitudinal Survey of the High School Class of 1972 who had been accepted for admission by at least one college. Although undergraduate financial aid programs are designed to compensate for financial need, variables related to financial need were found to be relatively poor predictors of college aid offers and the inclusion of “non‐need” variables did not measurably improve the predictive power of the model. These results suggest that disbursement of financial aid funds through college aid offices in 1972 was both inefficient and inequitable.