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<p>We investigate the impact of need-blind admission policy in conjunction with financial aid systems. We first show that for the need-blind admission policy to effectively promote the total enrollment of financially disadvantaged students, colleges should be able to make financial aid offers contingently on the student’s financial need level but not on their academic ability. Next, we argue that the existing federal student loan program inadvertently exacerbates the scholarship budget disparity between colleges, consequently impeding the enrollment of financially disadvantaged students. To address this problem, we deliberate on potential modifications to the student loan program and propose a supplementary matching loan scheme.</p>

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Need-blind college admissions, financial aid and student loan programs

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2025年9月9日

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  • Eun Jeong Heo,
  • In-Uck Park

摘要

We investigate the impact of need-blind admission policy in conjunction with financial aid systems. We first show that for the need-blind admission policy to effectively promote the total enrollment of financially disadvantaged students, colleges should be able to make financial aid offers contingently on the student’s financial need level but not on their academic ability. Next, we argue that the existing federal student loan program inadvertently exacerbates the scholarship budget disparity between colleges, consequently impeding the enrollment of financially disadvantaged students. To address this problem, we deliberate on potential modifications to the student loan program and propose a supplementary matching loan scheme.