There is no conflict of interest.
Highlights
- The study's objective was to examine the impact of the Minnesota State Colleges and Universities Two-Year Occupational Grant Pilot Program (Occupational Grant) on first-to-second-year persistence and on-time completion of a credential.
- The author conducted a quasi-experimental regression analysis to examine the impact of the Occupational Grant on a participant's persistence and completion. The author used a statistical model to compare the persistence and completion of students who received the Occupational Grant to matched comparison groups of students who did not receive the grant. The author used data from the Minnesota Statewide Longitudinal Education Data System for high school graduates from 2012 to 2016 and administrative data on federal and state financial aid.
- The study found that receipt of an Occupational Grant was associated with positive, statistically significant increases in rates of first-to-second year program persistence and on-time program completion.
- The study receives a moderate evidence rating. This means we are somewhat confident that the estimated effects are attributable to the Minnesota State Colleges and Universities Two-Year Occupational Grant Pilot Program, but other factors might also have contributed.
Intervention Examined
Features of the Intervention
The Minnesota State Colleges and Universities Two-Year Occupational Grant Pilot Program (Occupational Grant) was a financial aid grant for low- to moderate-income students who were pursuing in-demand career and technical education certificates, diplomas, or associate degree programs. As last-dollar funding, the grant covered a student's remaining balance for tuition and fees after other sources of state and federal financial aid were applied. The grant was designed to promote on-time completion of a credential within two academic years or less to allow recipients to quickly find employment in in-demand occupations. Grant recipients were required to participate in free mentoring services and meet with a mentor at least two times per semester.
The Occupational Grant program was awarded to Minnesota high school graduates of the class of 2016. Students had to be traditional high school graduates (i.e., receive a high school diploma and not a GED and enroll in college the fall after graduation) and have family adjusted gross incomes of $90,000 or less. Students also had to enroll in an eligible postsecondary career and technical education program at Minnesota's public community and technical colleges by the fall of 2016 (unless exempt).
Students were not required to apply directly for Occupational Grant awards. Instead, eligible students who submitted the Free Application for Federal Student Aid (FAFSA) were considered automatically. Community college and technical training programs each received a fixed amount of funding of Occupational Grant awards, based on the number of students who had previously enrolled in eligible programs. Eligible students were awarded grant funding on a first-come first-served basis, until the institution exhausted its fixed funding amount.
Features of the Study
The author conducted a quasi-experimental analysis to compare rates of program persistence and completion among students who received Occupational Grants to rates among matched comparison groups of students that did not receive a grant. The author used inverse probability weighted regression adjustment (IPWRA), which assigned students an analysis weight based on their estimated propensity score. Propensity scores – which reflected the predicted likelihood that students received a grant – were estimated using observed student-level and institution-level characteristics.
The treatment group consisted of 2016 high school graduates who received an Occupational Grant. The author conducted the IPWRA analysis separately for two comparison groups. The first comparison group consisted of 2016 high school graduates who enrolled in an eligible program in the fall of 2016 but only after their colleges had already exhausted their Occupational Grant funding. and the second comparison group consisted of 2012-2015 high school graduates who would have been eligible for the Occupational Grant, had the program existed at that time. This profile only summarizes study findings from the comparison of Occupational Grant recipients with the first comparison group – other 2016 high school graduates – since this comparison received a higher causal evidence rating.
The author used data from the Minnesota Statewide Longitudinal Education Data System for high school graduates from 2012 to 2016 and administrative data on federal and state financial aid. Minnesota students from 27 community and technical colleges were included in the study. The analysis sample consisted of 719 students in the treatment group, and 1,203 students in the matched comparison group.
Among students who received an Occupational Grant, the majority of students were male (about 65%), White (86%), and had enrolled in or completed career technical education courses before high school graduation (roughly 80% and 50%, respectively). The average student family’s adjusted gross income was about $65,000, and the average Occupational Grant award amount was approximately $1,900.
The treatment condition consisted of 2016 high school graduates who received the Occupational Grant. The comparison condition consisted of two groups: 2016 high school graduates who enrolled in postsecondary education in the fall of 2016 after their colleges had already awarded the Occupational Grant and previous high school graduates from 2012-2015 who would have been eligible for the Occupational Grant. The author used data from the Minnesota Statewide Longitudinal Education Data System for high school graduates from 2012 to 2016 and administrative data on federal and state financial aid.
Findings
Education and skills gains
- Occupational Grant recipients were 13.5 percentage points more likely to persist into the second year of their programs, compared to the matched comparison group of other 2016 high school graduates. The difference in program persistence was statistically significant.
- Occupational Grant recipients were 7.6 percentage points more likely to complete programs in which they were eligible to renew the Occupational Grant (consisting of more than 30 credits or more) on time, compared to the matched comparison group of other 2016 high school graduates. The difference in on-time completion was statistically significant.
Considerations for Interpreting the Findings
The author also compared outcomes for Occupational Grant recipients to a comparison group consisting of matched 2012-2015 high school graduates. Analyses using this comparison group received a low causal evidence rating, because the author used a cohort from previous enrollment years as the comparison group. Because the outcome data on the two groups were collected at different times, differences in outcomes could be due to time-varying contextual factors, such as overall changes in the economy, rather than due to the intervention.
Findings from the comparison with 2012-2015 high school graduates are not summarized in this profile but were similar to the findings from the comparisons with the 2016 high school graduate comparison group.
Causal Evidence Rating
Research Guidelines
Review Protocol: Living Systematic Annual Search and Review Protocol
Review Guidelines: Causal Evidence Guidelines