Assessing the Relationship Between Pell Grant and Federal Student Loan at Louisiana Four-Year Public Institutions

Abstract

After years of emphasizing college access in the US, lawmakers have become more concerned with college completion, this is because there has been a decline in the completion rate. Although there are other reasons, college affordability is one of the reasons why some students may start college but not complete it. Student loans are often justified on the grounds that higher education has economic benefits such as, it leads to higher salaries and improved employment prospects. Research has shown that grant aid increases the probability of enrollment in postsecondary education.  Thus, grant aid is important to students’ postsecondary opportunities and success. This study uses Pearson correlation, t-test and linear regression to evaluate the data and establish the relationship between Pell grants and Federal Student Loans. It seeks to find if a statistically significant relationship exists between Pell Grant and Student Loan.

Keywords: Student Loan, Pell Grant, Four-Year Public Institutions, Louisiana, Financial Aid, Federal Student Loan

DOI: 10.7176/JEP/11-9-04

Publication date:March 31^st 2020