Crossing educational borders : the effects of state financial aid on undocumented students' pursuit of higher education

Abstract

Currently there are twenty-two states (and the District of Columbia) that offer in-state resident tuition (ISRT) rates to undocumented youth who meet set residential criteria. As of January 2019, ten states (and the District of Columbia) have passed legislation allowing undocumented students to access state financial aid. While previous research focuses on how ISRT policies affect college entry, this study examines the effect state financial aid policies have on college enrollment. Using Current Population Survey (CPS) Merged Outgoing Rotation Groups (MORG) data from 1998-2017, I exploit the time variation in the passage of the laws to evaluate the effects of state financial aid has on undocumented students' decision to attend college. In my preferred specification, I find that state financial aid causes a statistically significant 2.7 percentage point increase in the proportion of undocumented youth enrolled in college. Additionally, men aged 21-24 experience the largest increase in college enrollment at a 5.5 percentage point increase.