Graduation Year

2025

Date of Submission

12-2024

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Daniel Firoozi

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© 2024 Alondra J Puerta

Abstract

Pell Grants are grants given to students with financial need. Students apply for Pell Grants through a financial aid application, Free Application for Federal Student Aid (FAFSA). FAFSA helps calculate the contribution parents can make towards their children's higher education, which colleges also use to calculate the student's financial aid. Pell grants are paid with taxpayer money, making it essential to determine whether government grants improve graduation outcomes. However, studies have shown that Pell Grants nationwide and statewide are less effective than intended. This study analyzes the effects of Pell Grants on a smaller scale, focusing on students from minority groups who are first-generation and attended the University of California, Irvine, from 2019 to 2021. The study ran a regression discontinuity design and found that Pell Grants are associated with increased graduation rates for Chicano or Mexican-American students who are eligible for Pell Grants and have Cal Grant A. The effect of Pell Grant eligibility on the outcome of Black or African-American students was also analyzed within this study. However, their outcomes were not as significant as Chicano or Mexican-American students. Pell grants do not impact students because other barriers exist.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

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