The Pros and Cons of ‘Free College’ and ‘College Promise’ Programs: What the Research Says

Free Tuition and College Enrollment: Evidence from New York’s Excelsior Program
Nguyen, Hieu. Education Economics, 2019.

New York’s Excelsior Scholarship — the nation’s first statewide “free college” initiative — has had a “negligible” effect on undergraduate enrollment in four-year colleges in the state, finds Hieu Nguyen, a researcher at the University of Tennessee, Knoxville.

Nguyen examined enrollment at public and private higher education institutions to gauge how students are responding to the initiative, launched in 2017 with the goal of helping more New York residents go to college. He looked at full-time undergraduate enrollment in the fall semesters between 2010 and 2017. He finds that even though students were offered free tuition, there was no statistically significant change in enrollment.

Nguyen indicates the program’s requirements might have discouraged some students from participating. “Apart from having to meet the state residency requirement to be eligible for the program, Excelsior recipients are expected to stay and work within the boundary of the state for the same number of years for which they receive the financial aid,” he explains in the paper. “While this constraint can be interpreted as fairly lax and reasonable by some, it might be viewed by others as too stringent, considering that New York has a high average cost of living relative to other states, and that Excelsior scholars are only awarded up to $5,500 per year after all other aid resources are exhausted.”

He notes that the Excelsior Scholarship is unlikely to change enrollment patterns among low-income students, whose tuition often is covered by other forms of financial aid such as federal Pell grants. Nguyen also notes the Excelsior program lacks a coaching component — unlike the Tennessee Promise program, which uses “community coaches” to help guide high school students toward graduation and immediately into college.

Understanding the Promise: A Typology of State and Local College Promise Programs
Perna, Laura W.; Leigh, Elaine W. Educational Researcher, 2018.

This academic paper offers a detailed look at the characteristics of college promise programs and introduces a framework for classifying them. The researchers analyzed 289 programs operating in the U.S. in fall 2016 and found they varied in numerous ways, including in their eligibility requirements, the types of costs covered, the structure of financial awards, the length of time students can receive the awards, and the number and types of higher education institutions that participate in the program.

“Perhaps most importantly, the analyses underscore the need for policymakers, practitioners, and researchers to recognize the diversity of approaches that is masked by the college promise label before drawing conclusions about the transferability of findings about one college promise program to another,” write the researchers, Laura W. Perna and Elaine W. Leigh of the University of Pennsylvania.

Perna and Leigh find that college promise programs have these features in common:

They aim to boost higher education attainment.
They offer a financial award to eligible students.
They have a place-based requirement such as residing in a specific city or state or attending a certain school or group of schools.
They tend to target the traditional college-age population.

Some other findings:

College promise programs exist nationwide, but the largest share of those that were analyzed — 37% — are in the South. A quarter are in the Midwest while 24% operate in the western U.S. and 14% are in the Northeast.
Just over half of the college promise programs are state-sponsored. More than three-quarters of state-sponsored programs require award recipients to live in the state for a year. Most — 80% — allow students to attend a two-year or four-year school.
Of those not sponsored by a state, 23% target students in a specific county, 24% target a school district and 11% target a city. More than half of programs that are not state-sponsored offer awards only to two-year colleges.
Of the programs examined, 28% cover full tuition and take a “last dollar” approach, meaning they cover the amount of tuition left over after a student’s grants, scholarships and other financial aid money are applied. Meanwhile, 12% cover the full cost of tuition on a “first dollar” basis, meaning the award is applied first, allowing students to use other forms of financial aid to pay for other education-related expenses such as books, housing and food.

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The Pros and Cons of ‘Free College’ and ‘College Promise’ Programs: What the Research Says

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