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See, for example, Leslie and Brinkman (1987), Savoca (1990), Schwartz (1986), and Mortenson and Wu 1

(1990).

SECTION I. INTRODUCTION 1

I. INTRODUCTION

Income inequality has been increasing for the past 20 years. A substantial part of the

increase in income differences can be explained by changes in the return to education. In dollar

terms, 1973 college graduates earned 45 percent more than high school graduates; by 1994 they

earned 65 percent more, based on real average hourly wages for college and high school

graduates (Baumol and Blinder, 1997). The increasing income disparities between groups of

differing educational attainment raises concern that access to postsecondary education (PSE) may

not be as widespread as desired. President Clinton urged for the goal of universal college access

in his 1997 State of the Union address, “We must make the thirteenth and fourteenth years of

education—at least two years of college—just as universal in America by the 21st century as a

high school education is today, and we must open the doors of college to all Americans.”

Using data from the National Education Longitudinal Study of 1988 (NELS) and the

National Postsecondary Student Aid Study (NPSAS), this study examines access to

postsecondary education by individuals in different income and test score groups. While many

studies have found a statistically significant effect of income on college enrollment, less attention 1

has been paid to the effect of family income after controlling for student achievement. This study

specifically addresses this issue. We also explore differences in the decision of whether or not to

attend PSE or in the type of PSE attended. We are interested in whether students are substituting

less expensive alternatives (such as public or 2-year institutions) for high cost institutions, or

whether they are not attending PSE at all. However, we do not examine selectivity of institutions

attended.

Another goal of this study is to determine which factors, including high school experiences, are especially important in determining college enrollment patterns. Hossler and Maple

(1993) find that information on individual background factors allows them to predict, with a high

degree of accuracy, which ninth-graders will go to college. The emphasis in our study is on how
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An NCES study, not yet released, has focused on the “pipeline to higher education” using the NELS data 2

(NCES, 1997).

SECTION I. INTRODUCTION 2

early indicators, such as expectations and course-taking behavior in the eighth grade, are related

to college attendance six years later.2

Last, we explore whether financial aid availability is a critical factor in determining PSE

attendance. The combined effects of shifting federal support from grants to loans, and college

tuition increasing at a rate faster than inflation are expected to have a large impact on enrollment

patterns for low income youth. This report examines knowledge of and attitudes toward financial

aid, and the relationship between such factors and PSE attendance. We also examine the effect of

financial aid receipt on PSE attendance.

In summary, the main research questions addressed in this report are:

1. What percentage of students attend PSE, and what types of PSE do they attend?

2. How are income and test score related to who goes to college?

3. What factors, including high school experiences, are especially important in

determining college enrollment patterns?

4. Is financial aid availability a critical factor for determining PSE attendance?

The rest of the report proceeds as follows. Section II describes the literature on individual

and institutional factors that affect PSE attendance. Section III provides an overview of the data

used in this report. It describes the NELS data, the NPSAS data, samples and weights used in the

study, and correction of standard errors for sampling techniques. Section IV examines who goes

to college. The section highlights the main answers to the first two research questions posed

above, in a univariate or multivariate framework. Section V examines factors related to PSE

attendance. Section VI explores the importance of financial aid, including knowledge of financial

aid, financial aid applications, and the relationship between being offered financial aid and PSE

attendance. Last, we include a bibliography of cited references. The executive summary (at the

beginning of the report) highlights our findings and provides policy implications. 
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SECTION I. INTRODUCTION 3

One subset of analysis for this study is the group of low income, high test score students. 

Low income, high test score students may have the potential to benefit greatly from PSE

attendance and, therefore, we want to identify factors or constraints, particularly financial ones,

that might limit the students’ educational opportunities beyond high school.
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SECTION II. LITERATURE REVIEW 4

II. LITERATURE REVIEW

Much of the research on college enrollment patterns is founded upon the “human capital”

model Gary Becker advanced. According to this theory, one decides to enroll in college as an

investment in future earning power. Individuals calculate the value of attending college by

comparing costs (direct and indirect) with expected income gains, and they make the decision that

will maximize their utility over the long term. To understand enrollment behavior according to

this model, it is necessary to look at such factors as tuition levels, student financial aid, average

wages for high school graduates, and the difference in lifetime earnings between high school and

college graduates.

Economists and others agree, however, that non-monetary factors also play a major part in

the college enrollment decision. Sociologists’ models of status attainment have suggested a

number of background variables that join with economic factors to influence college plans. These

include both personal traits (e.g., academic ability) and interpersonal factors, such as the level of

encouragement a student receives from parents and teachers. Hossler and Maple (1993) suggest

that individual decisions on enrollment can be broken down into three stages: predisposition,

search, and choice. According to their research, students who will ultimately attend college can

be differentiated from those who will not as early as the ninth grade.

Within the econometric and sociological models outlined above, the factors affecting

enrollment in college can be divided into two general types: those specific to individual students,

such as academic achievement and parental education levels, and those specific to educational or

vocational alternatives, such as college tuition, financial aid, and unemployment levels. Students’

enrollment decisions can be viewed as jointly determined by their individual characteristics and the

institutional or societal conditions that prevail. We first review individual traits that affect college

enrollment, and then institutional determinants.
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SECTION II. LITERATURE REVIEW 5

A. INDIVIDUAL FACTORS THAT AFFECT COLLEGE ENROLLMENT

Several studies have used data from the National Longitudinal Study of the High School

Class of 1972 (NLS72), the National Longitudinal Survey of Labor Market Experience, Youth

Cohort (NLSY), and the High School and Beyond Survey (HSB) to examine the factors affecting

college enrollments. Manski and Wise (1983), Rouse (1994), and a number of others have used

the variables included in these data sets to estimate multinomial logit models of enrollment decisions. Among the researchers, there seems to be considerable agreement regarding the individual

traits that help to determine enrollment. These traits are discussed below.

Manski and Wise (1983) presented a key point, namely that the enrollment process begins

with the student’s decision to apply to college. This is much more important than the decisions

made by college admissions personnel, since most would-be college students are likely to be

admitted to some postsecondary institution of average quality. Jackson (1988) reports that in

1972, more than 97 percent of college applicants were admitted to at least one of their top three

choices. The factors of greatest interest, then, are those that cause the student to seek to enroll.

Both Manski and Wise (1983) and Rouse (1994) find that individual traits such as

achievement levels, high school class rank, and parental education levels are of primary importance in determining the likelihood of a student’s applying to college. They state that higher

family income levels increase the probability of application as well, but to a lesser extent. Manski

and Wise also cite a “ ‘peer’ or high school quality effect,” such that the larger the share of a high

school senior’s classmates who attend 4-year schools, the more likely he or she will be to do the

same. A recent NCES report (1997) describes the relationship among six risk factors (such as

changing schools two or more times) and PSE attendance rates.

St. John and Noell (1989) and St. John (1990) draw similar conclusions from the NLS72

and HSB data sets. St. John and Noell state that certain “social background variables” appear to

make college enrollment more likely. These include higher test scores, higher grades, higher
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St. John and Noell do not include paternal education levels as a variable in their study. Manski and Wise and 3

Rouse consider maternal and paternal education levels as separate variables, but present their conclusions in terms of

parental education levels as a whole. Most of the studies reviewed here do not distinguish between mother’s and

father’s education levels. One exception is the study by Kohn, Manski and Mundel (1976). This study estimates a

model using subsamples of the SCOPE survey from two different states. While one group shows that the father’s

education level has a greater effect on the likelihood of college attendance than does the mother’s, the other group shows

the mother’s education level as having a greater effect.

SECTION II. LITERATURE REVIEW 6

maternal education levels, and family income, as cited by Manski and Wise and Rouse. Other 3

key variables include participation in an academic track during high school and “high postsecondary aspirations,” as measured by students’ reporting of the highest level of schooling they

expect to achieve.

Hossler and Maple (1993) find that parental education levels have a stronger effect on

enrollment plans than student ability or income level. Other background factors that researchers

have found to be significant include the level of parental encouragement (Hossler, Braxton, and

Coopersmith, 1989) and students’ own expectations about the college decision (Borus and

Carpenter, 1984). Jackson (1988) concludes that test scores, grades, taking part in a college

preparatory program, and attending a school with many college-going peers are the student

attributes most important for college enrollment. Kohn, Manski, and Mundel (1976) report that

parents’ education level has a positive effect on a student’s likelihood of enrollment, but state that

this effect decreases as family income rises.

A number of researchers have examined the effects of family income levels on college

enrollment. Manski (1992:16) concludes that there are “persistent patterns of stratification of

college enrollments by income.” Both Manski (1992) and Kane (1995) present census data for

multi-year periods that show, for ascending income levels, a steadily increasing percentage of 18-

to 19-year-old dependent family members enrolled in college. Using the same data source,

Clotfelter (1991) and Mortenson and Wu (1990) cite positive income effects for the 18- to 24-

year-old group as well. Hauser (1993) finds large family income effects on college enrollment for

White and Hispanic families, but he finds no such effects for Black families.
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SECTION II. LITERATURE REVIEW 7

B. INSTITUTIONAL FACTORS THAT AFFECT COLLEGE ENROLLMENT

In addition to the factors that operate at an individual level, researchers have found a

variety of institutional factors, or factors pertaining to educational and vocational alternatives, that

affect college enrollment levels. Manski and Wise (1983) include among these factors tuition

level, “quality of school” (as measured by the average combined SAT score of incoming freshmen), and the availability of government and institutional financial aid. Rouse (1994) examines

the factor of proximity by estimating changes in enrollments that would result from decreasing the

average distance to the nearest 2-year college. She also considers the effects of tuition levels and

financial aid availability, as well unemployment rates, which serve as a measure of competing

opportunities available to high school seniors.

Tuition levels are another institutional factor with a significant effect on college enrollment. Leslie and Brinkman (1987) review 25 studies on this subject, and find a general consensus

that a $100 increase in tuition nationwide, in 1982–1983 academic year dollars, would result in a

6 percent decline in the college participation rate for the 18- to 24-year-old group. Savoca (1990)

makes the point that high tuition levels may lessen postsecondary enrollments in the

aggregate by discouraging some students from ever applying to college. The effects of tuition

levels are moderated in many cases by the effects of financial aid. McPherson and Schapiro

(1991) state that the variable of interest should be net cost, or tuition less financial aid. At the

initial stages of the enrollment decision, however, students often lack information on their

eligibility for financial aid and the amount of aid they would be likely to receive.

Researchers have differing views regarding the effects of financial aid on enrollment at

different types of institutions. Reyes (1994) finds that increases in financial aid positively affect

both 2-year and 4-year college enrollment rates, based on information from the NLSY and HSB. 

Manski and Wise (1983), using the NLS72, conclude that financial aid affects students’ decisions

to attend 2-year institutions, as opposed to not going to college at all. However, this study finds

that enrollments at 4-year schools have little sensitivity to the availability of financial aid. Manski

and Wise do not consider the effect of financial aid on the student’s choice between a 2-year and a

4-year institution.
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SECTION II. LITERATURE REVIEW 8

Other researchers have compared the effects of decreasing tuition with the effects of

increasing financial aid. Manski and Wise (1983) find that for those attending 2-year schools, an

additional dollar of financial aid would be worth more than a one dollar reduction in tuition. St.

John (1990:172) also finds that “college applicants...[are] more responsive to changes in student

aid than to changes in tuition,” except for those in the upper income group. Kane (1995),

however, argues that while financial aid increases may be more equitable because they are means

tested, they are not as effective as decreases in tuition. This is a consequence of the complexity of

the financial aid application process and the unwillingness of low income families to borrow to

finance a college education.

When studying the effect of tuition and financial aid on PSE enrollment, the group to be

especially concerned about is low income students. Leslie and Brinkman (1987) and Savoca

(1990) find that tuition levels affect enrollment decisions for low income students much more than

for middle and upper income groups. By the same token, the availability of financial aid is a much

more crucial factor for those at lower income levels. Orfield (1992) notes that the maximum Pell

grant is less than one-fifth of the tuition at an elite university. Such a gap between aid and costs,

he contends, may steer many low income students toward lower cost schools. Hearn’s 1991

study supports this hypothesis. He finds that when academic ability, achievement, and other

factors are controlled for, lower income students are especially likely to choose institutions of

lower selectivity.

Schwartz (1985) finds that low income students are affected differently by publicly provided financial aid and aid supplied by institutions. He states that public grants tend to promote

greater equity among income groups in college enrollment. Private grants, however, are often

awarded on the basis of academic ability, and they tend to favor students who could afford to go

to college without them. Clotfelter (1991) expresses the same concern about the effects of

institutional aid. Manski and Wise (1983) note that even public aid is not always awarded where

the need is greatest. They state that in 1979, 59 percent of Basic Educational Opportunity Grants

were awarded to students who would probably have gone to college in the absence of such aid.

Table 1 summarizes the data sources used in the studies mentioned here.
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SECTION II. LITERATURE REVIEW 9

Table 1

MAIN DATA SOURCES FOR WORKS CITED IN LITERATURE REVIEW

STUDY MAIN DATA SOURCES

 Borus, Michael E. and Carpenter, Susan A., “Factors 1979 and 1980 National Longitudinal Surveys of Labor

Associated with College Attendance of High-School Market Experience, Youth Cohort (NLSY)

Seniors” (1984)

 Clotfelter, Charles T., “Demand for Undergraduate Review of studies done by others, with data from Current

Education” (1991) Population Survey (CPS) and High School and Beyond

(HSB)

 Hauser, Robert M., “Trends in College Entry among CPS

Whites, Blacks, and Hispanics” (1993)

 Hearn, James C., “Academic and Nonacademic Influences HSB, Higher Education Research Institute (HERI) data

on the College Destinations of 1980 High School

Graduates” (1991)

 Hossler, Don, Braxton, John and Coopersmith, Georgia, Review of studies done by others

“Understanding College Choice” (1989)

 Hossler, Don and Maple, Sue, “Being Undecided about Cluster sample of 5,000 Indiana ninth graders

Postsecondary Education” (1993)

 Jackson, Gregory A., “Did College Choice Change during National Longitudinal Study of the High School Class of

the Seventies?” (1988) 1972 (NLS72), HSB

 Kane, Thomas, “Rising Public College Tuition and NLSY, HSB, CPS

College Entry: How Well Do Public Subsidies

Promote Access to College?” (1995)

 Kohn, Meir G., Manski, Charles F., and Mundel, David S., School to College: Opportunities for Postsecondary

“An Empirical Investigation of Factors which Education (SCOPE) Survey

Influence College-going Behavior” (1976)

 Leslie, Larry L., and Brinkman, Paul T., “Student Price Meta-analysis of studies done by others

Response in Higher Education” (1987)

 Manski, Charles F., and Wise, David A., College Choice

in America (1983)

NLS72

 Manski, Charles F., “Income and Higher Education” NLS72, HSB, CPS

(1992)

 McPherson, Michael S., and Schapiro, Morton Owen, Cooperative Institutional Research Program (CIRP) data,

“Does Student Aid Affect College Enrollment? New CPS

Evidence on a Persistent Controversy” (1991)

 Mortenson, Thomas G., and Wu, Zhijun, “High School HSB, Current Population Report, CPS

Graduation and College Participation of Young Adults

by Family Income Backgrounds 1970 to 1989” (1990)

 National Center for Education Statistics. “Confronting the NELS

Odds: Students At Risk and the Pipeline to Higher

Education” (1997).
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STUDY MAIN DATA SOURCES

SECTION II. LITERATURE REVIEW 10

 Orfield, Gary, “Money, Equity, and College Access” Review of history of federal student financial aid programs

(1992)

 Reyes, Suzanne, “The College Enrollment Decision: The NLSY, HSB

Role of the Guaranteed Student Loan” (1994)

 Rouse, Cecilia Elena, “What to Do after High School: NLSY, HSB, CPS

The Two-Year versus Four-Year College Enrollment

Decision” (1994)

 St. John, Edward P., and Noell, Jay, “The Effects of NLS72, HSB

Student Financial Aid on Access to Higher Education: 

An Analysis of Progress with Special Consideration of

Minority Enrollment” (1989) 

 St. John, Edward P., “Price Response in Enrollment HSB

Decisions: An Analysis of the High School and

Beyond Sophomore Cohort” (1990)

 Savoca, Elizabeth, “Another Look at the Demand for NLS72

Higher Education: Measuring the Price Sensitivity of

the Decision to Apply to College” (1990)

 Schwartz, J. Brad, “Student Financial Aid and the College HSB, CPS

Enrollment Decision: The Effects of Public and

Private Grants and Interest Subsidies” (1985)

 Schwartz, J. Brad, “Wealth Neutrality in Higher HSB, CPS

Education: The Effects of Student Grants” (1986)
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SECTION III. DATA 11

III. DATA

A. NELS DATA

While a number of studies have used data from the National Longitudinal Survey, Youth

Cohort (NLSY), the National Longitudinal Study of the High School Class of 1972 (NLS72), and

the High School and Beyond Survey (HSB) to examine the factors affecting college enrollments,

this work effort is among the first to use NELS to analyze these types of issues. In 1988, NELS

initially surveyed over 24,000 public and private school eighth graders throughout the United

States. The nationally representative eighth grade cohort was tested in four subjects

(mathematics, reading, science, and social studies). Two teachers of each student (representing

two of the four subjects) were also surveyed, as was an administrator from each school. On

average, each of the 1,052 participating schools was represented by 24 students and five teachers. 

Parents were also surveyed, providing researchers with detailed information on family background

variables.

Since 1988, the initial eighth grade cohort has been re-surveyed three times (and has been

“freshened” with new sample members). The first follow-up of NELS (spring, 1990), included

the same components as the base year study, with the exception of the parent survey, which was

not implemented in the 1990 round. It also included a component on early dropouts (those who

left school between the end of eighth grade and the end of 10th grade). The second follow-up

(spring, 1992), repeated all components of the first follow-up study and also included a parent

questionnaire. However, this time only one teacher of each student (either a mathematics or a

science teacher) was asked to complete a teacher questionnaire. High school transcript data were

also collected for these students.

A subsample of the NELS:88 second follow-up sample was again followed-up in the

spring of 1994, when most sample members had been out of high school for 2 years. In all,

14,915 students were surveyed, most through computer-assisted telephone interviewing. Major

content areas for the third follow-up questionnaire were: education histories; work experience

histories; work-related training; family formation; opinions and other experiences; occurrence or
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SECTION III. DATA 12

non-occurrence of significant life events; and income. Data collection for this wave began on

February 4, and ended on August 13, 1994. At the time the data were collected, most of the

respondents were 2 years out of high school. Table 2 summarizes the components of the different

waves of the surveys.

Table 2

OVERVIEW OF NELS

NELS Base Year First Follow-up Second Follow-up Third Follow-up

Components Spring term 1988 Spring term 1990 Spring term 1992 Spring 1994

Grades included grade 8 modal grade = modal grade = senior H.S. + 2 years

sophomore

Cohort students: students, dropouts: students, dropouts: all individuals:

questionnaire, tests questionnaire, tests questionnaire, tests, questionnaire

H.S. transcripts

Parents questionnaire none questionnaire none

Principals questionnaire questionnaire questionnaire none

Teachers two teachers per two teachers per student one teacher per none

student (taken from (taken from reading, student (taken from

reading, mathematics, mathematics, science, or mathematics or

science, or social social studies) science)

studies)

B. NPSAS DATA

Because the NELS database does not contain detailed information on financial aid, the

National Postsecondary Student Aid Study (NPSAS) database is used to supplement our study

with additional financial aid information. This database is used to predict financial aid for the

respondents in NELS based on demographic and other characteristics that are available in both

databases. NPSAS is constructed specifically to provide information on financing of postsecondary education, so it is a good candidate for this use. This database surveys a nationally

representative sample of undergraduate, graduate, and first-professional students attending less

than 2-year, 2-year, 4-year, and doctoral granting institutions. Both students who receive and

those who do not receive financial aid are surveyed.
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Those who were tenth graders in 1990 but were not in the base-year sampling frame, either because they were 4

not in the country or because they were not in the eighth grade in the spring term of 1988.

Those who were 12th graders in 1992 but were not in either the base year or first follow-up sampling frames, 5

either because they were not in the country or because they were not in the eighth (10th) grade in the spring term of

1988 (1990).

Students excluded in 1988 due to linguistic, mental, or physical obstacles to participation. 6

SECTION III. DATA 13

The 1993 NPSAS study collected information on more than 78,000 undergraduate and

graduate students at about 1,100 institutions. To be eligible, students must have been enrolled

between May 1, 1992 and April 30, 1993 at a postsecondary institution in the United States or

Puerto Rico. The students had to be enrolled in courses for credit, and in a program of 3 months

or longer. Also eligible for inclusion were students who received a bachelor’s degree between

July 1, 1992 and June 30, 1993. Students who were enrolled in a GED program or who were

also enrolled in high school were not included.

C. SAMPLE AND WEIGHTS

Of the 14,915 respondents in the third NELS follow-up, 13,120 are represented in all four

waves of the NELS data. The remaining 1,795 respondents are either first follow-up “freshened”

students, second follow-up freshened students, base-year ineligibles, or base-year 4 5 6

eligible students who declined to participate in one or more of the survey waves, but who did

participate in the third survey wave. The breakdown of these 1,795 respondents is as follows:

501 first follow-up freshened students, 102 second follow-up freshened students, 271 base-year

ineligibles, and 921 base-year eligibles with missing survey waves.

To take advantage of the longitudinal nature of the NELS data and to be consistent across

models and issues in the report, we focus our work on the sample of 13,120 respondents

represented in all four waves of the NELS data. Consequently, the weight used in our analyses,

(“F3PNLWT”) applies to sample members who completed questionnaires in all four rounds of

NELS:88. As a result, the longitudinal analyses that we conduct, and the estimates that are

produced in this study can only be used to make projections to the population of spring 1988

eighth graders. In the descriptive tables, all percentages are weighted using F3PNLWT, including

the analyses with the high school transcript data.
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SECTION III. DATA 14

This sample includes dropouts, since the purpose of this study is to examine the overall

question of what characteristics of eighth graders in 1988 are related to PSE attendance. We

focus on early indicators, such as educational expectations and course-taking behavior in the

eighth grade, and not on the “pipeline” of high school experiences that a dropout would lack

access to. However, the dropouts were not asked the same set of survey questions as the other

respondents, and, therefore, some of the analysis does not include dropouts. For each of our

tables or figures, we note whether or not the dropouts are included in the analysis.

D. CORRECTED STANDARD ERRORS

Because NELS data are collected through a multi-stage sampling scheme, calculation of

standard errors through standard methods can understate these errors. The sampling technique

used in NELS is a selection of schools, and then within schools, a selection of students. With this

sampling method, the observations of different students may not be independent from one

another. StataTM, the statistical software used for analysis in this report, corrects the standard

errors for these sampling techniques. Except for multinomial logit models, for which this

correction is not available, survey correction techniques are used, and we note whenever the

corrections are not used. However, we have found that such corrections do not have a large

effect on our results, and therefore, we present all results with confidence.

E. VARIABLE DEFINITIONS

The appendix to this study contains definitions of the key variables used in our analysis. 

For each key variable, we describe how we constructed the variable and we list the names of the

NELS variables used in the construction.
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SECTION IV. WHO GOES TO COLLEGE? 15

IV. WHO GOES TO COLLEGE?

A. WHAT PROPORTION OF STUDENTS ATTEND COLLEGE, AND WHAT TYPE

OF COLLEGE DID THEY ATTEND?

We begin our analysis by examining the demographics of postsecondary school choice and

discussing our main findings regarding college attendance rates and types of postsecondary

education (PSE) attended. As shown in Table 3, a majority of 1988 eighth graders attend some

type of PSE by 1994. Overall, 62.7 percent of the respondents attend PSE. (Note that in all of

the tables in this report, all percentages are weighted.)

Students are most likely to attend a 4-year public or a less than 4-year public school. 

Approximately 24 percent of the students attend each of these types of schools. Next most

common are 4-year private schools. Just over 11 percent of the respondents attend 4-year private

schools. Only 4 percent of the respondents attend less than 4-year private schools. Thirty-seven

percent of the respondents do not attend any type of PSE.

Women are slightly more likely than men to attend PSE. While 60 percent of men attend

PSE, 65 percent of women attend. Women are more likely than men to attend 4-year private

schools and less than 4-year private schools.

Native Americans, Blacks, and Hispanics are least likely to attend PSE and Asians and

Pacific Islanders are most likely to attend PSE. Hispanics are most likely to attend less than 4-

year private schools.

Students whose parents have higher education levels are much more likely to attend PSE. 

While only 33 percent of students whose parents have less than a high school education attend

PSE, 90 percent of students whose parents have an advanced degree attend PSE.
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SECTION IV. WHO GOES TO COLLEGE? 16

Table 3

DEMOGRAPHICS OF POSTSECONDARY SCHOOL CHOICE1

No PSE 4-Year Public 4-Year Private <4-Year Public <4-Year Private2

All observations (weighted distribution) 37.3 24.0 11.1 23.7 4.0

By Sex

male (50.1) 40.0 23.6 9.7 23.8 2.9 3

female (49.9) 34.7 24.3 12.4 23.6 5.0

By Race

Asian/ Pacific Islander (3.5) 21.0 29.8 17.6 27.5 4.1

Hispanic (10.3) 47.1 16.1 5.7 25.1 5.9

Black (13.3) 48.0 20.4 7.7 18.9 5.0

White (71.4) 34.2 25.8 12.3 24.2 3.5

Native American (1.4) 62.2 10.1 3.6 22.0 2.2

By Parents’ Highest Education

< high school (10.8) 66.6 8.5 2.7 15.7 6.6

high school diploma or GED (20.3) 55.8 13.1 5.0 22.9 3.2

some college (41.2) 38.2 22.9 8.2 26.7 4.1

4-year college graduate (14.5) 13.3 40.5 18.9 23.6 3.7

advanced degree (13.2) 9.6 39.7 30.4 17.8 2.6

By Region

northeast (19.3) 27.9 26.1 24.0 17.3 4.6

midwest (25.7) 35.6 28.0 10.6 21.6 4.2

south (35.7) 40.2 24.8 7.3 24.2 3.4

west (19.4) 36.1 19.3 8.1 32.4 4.1

By Urbanization

urban (28.4) 34.3 24.9 13.8 23.0 4.0

suburban (40.5) 31.7 25.7 12.3 25.7 4.5

rural (31.1) 42.5 23.7 8.5 22.1 3.3

This analysis includes high school dropouts. 1

Private schools less than 4-years include private for profit schools. 2

An example of the way this table should be read is that 40 percent of males who were eighth graders in 1988 do not 3

go to PSE by 1994, 23.6 percent of males go to a 4-year public college, 9.7 percent of males go to a 4-year private

college, 23.8 percent of males go to less than 4-year public school, and 2.9 percent of males go to a less than 4-year

private school. Rows sum to 100 percent (approximately because of rounding). In addition, 50.1 percent of our

sample is male and 49.9 percent is female.
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We tested three other definitions of low income, besides the bottom third: bottom fourth of income 7

distribution; family income below 150 percent of the poverty threshold; and family income below the Pell grant

maximum eligibility level. Using these alternative definitions, the percentage asigned to the low income, high test score

group did not vary significantly. For example, the (weighted) percentage of low income, high test score students

attending PSE ranged from 70 to 72 percent and the percentage attending a 4-year institution ranged from 45 to 47

percent. 

 This test is described in the Appendix. 8

SECTION IV. WHO GOES TO COLLEGE? 17

B. HOW ARE INCOME AND TEST SCORE RELATED TO WHO GOES TO

COLLEGE?

This section first describes how we divided the NELS sample into income and test score

groups, and then describes how income and test score are related to who goes to college.

Family income level is defined using total family income, as provided by the parents in the

base-year and second follow-up questionnaires. We divided the family income levels in the base

year into bottom, middle, and top groups. Since family income is only available in ranges, and not

as exact amounts, we were unable to divide the sample into three groups of equal size. Rather,

the low income, middle income, and high income groups represent 38 percent, 39 percent and 23

percent of our sample, respectively.

When the base-year family income was not available, students were placed according to

second follow-up family income ranking. The rationale for this method was to ensure a sufficient 7

number of observations in the low income group. Since the income groups are only used to

assign a respondent to one of the three groups, and are not used to assign an actual dollar amount

of family income, this approach is reasonable. Further, we found that, for those with both data

points of family income, a person in a given income group in the base year was most likely to be

in the same income group in the second follow-up year.

As a proxy measure of ability, we used the composite reading/math test score administered

in each wave of the survey. We divided the scores from the base year into bottom, middle, and 8

top groups, with approximately one-third of the students in each category. If the base-year test

score was not available, then students were placed according to their ranking in the first follow-up

test, and if both the base-year test and the first follow-up test were missing, then students were
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SECTION IV. WHO GOES TO COLLEGE? 18

placed according to their ranking in the second follow-up test. Again, the rationale for this

method is to ensure a reasonable number of observations, and is only used to assign a person to

one of the three groups. As with income, test scores for an individual are highly correlated across

the survey waves. A person in a given test score group in the base year is most likely to be in the

same test score group in the first and second follow-ups.

Table 4 and Figure 1 depict key points regarding the relationship among income, test

score, and PSE attendance for all 1988 eighth graders, including dropouts. We find that

individuals with the lowest test scores are least likely to attend PSE. While 38 percent of the

lowest test score group attends PSE, 63 percent of the middle test score group attends PSE and

87 percent of the highest test score group attends PSE. PSE attendance also increases with

family income. Nearly 44 percent of the bottom family income group attends PSE, 69 percent of

the middle income group attends PSE, and 86 percent of the top income group attends PSE.

When we examine only the high test score students, income differences are greatly

reduced but are not eliminated. Of those in the top test group, 75 percent of the low income

group attend PSE. This compares with 86 percent of those in the middle income, top test score

group and 95 percent in the top income, top test score group. However, the low income, high

test score individuals do attend PSE at a higher rate than the high income, low test score

individuals (75 percent versus 64 percent).

Income effects tend to diminish in magnitude as test scores increase. For example, within

the bottom test group, the difference in PSE attendance rates for low income and high income

individuals is 35 percent (29 percent versus 64 percent). This contrasts with the 20 percent

difference in PSE attendance rates for low income and high income individuals within the top test

group, (75 percent versus 95 percent). 
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SECTION IV. WHO GOES TO COLLEGE? 19

Table 4

POSTSECONDARY SCHOOL CHOICE, BY INCOME AND TEST SCORE1

No PSE 4-Year Public 4-Year Private <4 Year Public <4 Year Private

All observations (weighted distribution) 37.3 24.0 11.1 23.7 4.0

By Test Score

bottom (33.8) 61.7 8.8 2.8 21.9 4.8 2

middle (33.4) 36.6 21.9 8.2 28.8 4.5

top (32.8) 13.0 41.6 22.4 20.5 2.5

By Family Income Level

bottom (38.4) 56.1 14.5 5.3 19.6 4.5

middle (38.8) 31.2 25.6 10.9 28.3 4.1

top (22.8) 14.4 38.1 21.5 23.2 2.9

By Test Score and Family Income

bottom test, bottom income (18.8) 70.9 6.7 1.6 16.1 4.8

bottom test, middle income (10.8) 53.4 10.8 4.1 26.8 4.8

bottom test, top income (3.8) 36.4 15.8 4.8 38.3 4.8

middle test, bottom income (12.9) 50.6 15.9 5.6 23.5 4.4

middle test, middle income (13.9) 31.9 21.8 7.4 34.2 4.7

middle test, top income (6.7) 19.2 33.1 15.0 28.4 4.3

top test, bottom income (6.8) 25.3 33.7 14.9 22.4 3.7

top test, middle income (14.2) 13.9 40.3 19.4 23.5 2.9

top test, top income (12.2) 4.8 47.7 30.1 15.9 1.6

Dropouts are included. 1

An example of how to read this table is that 61.7 percent of those 1988 eighth graders who were in the bottom test 2

score group do not attend PSE, 8.8 percent attend a 4-year public college, 2.8 percent attend a 4-year private college,

21.9 percent attend a less than 4-year public school, and 4.8 percent attend a less than 4-year private schools. Rows

sum to 100 percent (approximately because of rounding). In addition, 33.8 percent of our sample is in the bottom test

score group.
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SECTION IV. WHO GOES TO COLLEGE? 20

FIGURE 1 HERE
MATHTECH, INC.

Here we examine activities that students engage in 2 years after the normal high school graduation rate 9

regardless of whether they graduated from high school at the normal time. As such, dropouts are included in the table.

SECTION IV. WHO GOES TO COLLEGE? 21

C. HOW ARE INCOME AND ABILITY RELATED TO THE TYPE OF PSE

ATTENDED?

Figure 2 examines PSE attendance at 4-year schools for those students who attend PSE. 

As shown, for those in PSE, low income students are less likely to attend 4-year schools than

higher income students, even among high test score students. While 65 percent of those

individuals in the bottom income, top test score group who attend PSE attend a 4-year college, 69

percent of those in the middle income, top test score group and 82 percent of those in the top

income, top test score group attend a 4-year college. Thus, controlling for test score, low income

students are less likely to attend 4-year schools than higher income students.

For those in PSE, low income students are disproportionately found in public institutions

relative to higher income students, even within the group of high test score students. Further

examination of Table 4 shows that while 31 percent of low income, high test score students who

attend 4-year institutions attend private schools; 39 percent of high income, high test score

students attend private schools.

D. WHAT POST HIGH SCHOOL ACTIVITIES ARE STUDENTS INVOLVED IN?

Next we examine educational and other activities that students engage in after high school

by income and test score groups. Table 5 describes the full range of activities a respondent might

be involved in after high school.9

Students in the bottom income, top test score group are most commonly combining work

and academic courses 2 years after they would be expected to have graduated from high school. 

The same is true of the respondents in the middle income, top test score group. This compares

with students in the top income, top test score group, who are most likely to be taking academic

courses and not working. Relative to the top income, top test score group, the bottom and 
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SECTION IV. WHO GOES TO COLLEGE? 22

[FIGURE 2 HERE]
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SECTION IV. WHO GOES TO COLLEGE? 23

Table 5

POST HIGH SCHOOL ACTIVITIES, BY INCOME AND TEST SCORE1

Bottom Family Income Middle Family Income Top Family Income

Bottom Middle Top Bottom Middle Top Bottom Middle Top 

test test score test score test score test score test score test score test score test score

score

Work and academic courses 9.2 18.9 36.4 17.8 29.8 38.4 31.1 30.9 34.6

Work and vocational courses 3.0 3.7 2.2 4.8 4.4 1.8 2.2 3.3 1.2

Work and no school 48.6 43.9 24.8 48.5 31.6 20.5 37.5 19.3 9.6 2

Academic courses and no work 5.8 10.7 19.3 8.5 16.5 28.2 11.2 28.9 45.2

Vocational courses and no work 1.9 1.5 1.0 1.8 1.8 0.5 3.2 2.4 0.3

Academic courses and looking for work 0.8 2.0 2.0 1.5 3.2 2.5 0.9 3.7 3.3

Vocational courses and looking for work 1.5 0.3 0.1 0.8 0.3 0.3 0.0 0.0 0.0

Looking for work and no school 12.8 7.3 4.3 6.3 4.3 1.9 4.0 5.4 1.7

Military and academic or vocational courses 0.0 0.1 0.1 0.1 0.1 0.1 0.0 0.1 1.0

Military and work 0.6 1.3 1.3 0.7 1.4 0.5 0.6 0.9 0.6

Military only 1.3 2.8 3.9 1.6 2.8 1.8 0.6 1.5 0.3

Training and academic or vocational courses 0.4 0.0 0.4 0.1 0.1 0.3 0.6 0.2 0.2

Training only 0.5 0.2 0.0 0.2 0.1 0.1 0.0 0.0 0.1

Keeping house only 7.9 4.1 2.1 4.8 2.8 1.6 3.8 1.3 0.6

Other 5.9 3.3 2.2 2.5 0.8 1.6 4.3 2.2 1.3

Dropouts are included in this analysis. 1

An example of how to read this table is that 48.6 percent of bottom income, bottom test score respondents reported that they worked, 43.9 percent of bottom 2

income, middle test score respondents reported that they worked, 24.8 percent of bottom income, top test score respondents reported that they worked, 48.5

percent of middle income, bottom test score respondents reported that they worked, 31.6 percent of middle income, middle test score respondents reported that

they worked, 20.5 percent of middle income, top test score respondents reported that they worked, 37.5 percent of top income, bottom test score respondents

reported that they worked, 19.3 percent of top income, middle test score respondents reported that they worked, and 9.6 percent of top income, top test score

respondents reported that they worked. Columns sum to 100 percent (approximately due to rounding).
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SECTION IV. WHO GOES TO COLLEGE? 24

middle income, top test score groups are more likely to be working and not attending PSE (25

percent and 21 percent compared to 10 percent for the high income, high test score group). This

suggests that forgone earnings may be a bigger factor affecting the enrollment decision of lower

and middle income students, even high test score students who likely could succeed in college.

Those in the bottom income, top test score group are the most likely to enter the armed

forces. While 4 percent of those in the bottom income, top test score group are in the “military

only” category, 2 percent of those in the middle income, top test score group, and less than 1

percent of those in the top income, top test score group are in this category. This indicates that a

small fraction of lower income students choose to enter the military as an alternative to PSE,

perhaps because of lack of financial resources.
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 25

V. FACTORS RELATED TO PSE ATTENDANCE

This section discusses factors related to PSE attendance. After describing the reasons

students give for not planning to attend PSE, we describe factors related to PSE attendance. We

then report the associated results from multivariate logit models.

A. WHAT ARE THE REASONS STUDENTS GIVE FOR NOT PLANNING TO

ATTEND PSE?

One of the important goals of this study is to determine the factors that are related to PSE

attendance, especially for low income students. Although self-reported reasons why individuals

do not plan to attend PSE can be problematic since people will tend to put the “best” face on

whatever decision they made, they do provide some indication of students’ reasoning in their

education choices. Table 6 explores reasons why respondents do not plan to attend PSE by

income and test score, for those students who do not plan to continue their education immediately

after high school. The table does not include high school dropouts, as they were not asked these

questions.

All of the groups of students are most likely to report that they do not plan to attend PSE

because they plan to take off time before continuing their education. The non-financial reasons

for not planning to attend PSE are similar across the income spectrum.

The gaps across income groups are much larger for the financial reasons. As expected,

low income students are more likely than higher income students to report that they cannot afford

school and that they have to support their family. Of those students who say they do not plan to

attend PSE immediately after high school, 57 percent of bottom income, top test score students

report that it is because they cannot afford to attend, 38 percent of the middle income, top test

students give this reason and 21 percent of the top income, top test score students give this

reason. Likewise, over 19 percent of the bottom income, top test score students state that they

do not plan to attend PSE because they have to support their family, as compared to 11 percent of
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 26

Table 6

REASONS RESPONDENTS DID NOT PLAN TO ATTEND PSE, BY INCOME AND TEST SCORE1

Reasons Respondents Do not Plan to Attend PSE Bottom Family Income Middle Family Income Top Family Income

Bottom Middle Top Bottom Middle Top Bottom Middle Top 

test score test score test score test score test score test score test score test score test score

Percentage not planning to continue education right 40.1 30.7 16.0 31.6 21.8 11.7 25.5 14.7 4.3

after high school

Cannot afford school 49.7 49.2 57.2 45.0 42.5 37.7 27.8 37.8 21.2

Has to support family 26.7 18.7 19.3 15.4 12.3 10.7 14.1 15.6 0.6

Does not like school 29.5 31.5 32.2 33.2 30.6 36.6 40.5 30.8 43.2 2

Grades not good enough 37.0 29.9 28.8 34.4 23.4 13.5 29.4 19.6 21.6

Test scores too low 17.3 7.3 7.9 13.3 9.4 2.8 13.7 5.8 6.2

Will not need more school for job 27.6 15.9 13.3 23.8 14.6 13.1 20.4 11.6 9.6

Not accepted to schools applied to 10.5 1.9 6.9 6.8 3.9 2.9 9.0 2.3 2.1

Has not taken the right courses 25.1 15.0 10.8 19.8 11.9 7.4 18.7 12.7 9.1

No one in the family has gone to college 23.1 14.8 13.9 13.3 9.1 7.7 7.8 5.1 2.5

Plans to take off time before school 64.4 68.4 78.5 62.5 72.4 78.3 54.4 76.1 69.5

Would rather work and earn money 47.9 37.4 42.9 43.4 45.4 38.3 36.9 24.2 40.6

Plans to be full-time homemaker 8.4 4.6 3.9 5.0 4.5 6.4 5.1 1.6 7.5

Does not think school is important 16.2 7.1 11.1 16.2 12.3 9.8 15.7 7.2 15.8

Teacher recommended work 9.8 3.8 4.3 6.8 2.4 2.2 6.5 4.2 0

This analysis does not include high school dropouts, as they were not asked these questions. 1

An example of how to read this table is that 29.5 percent of bottom income, bottom test score respondents who do not plan to attend PSE immediately after high 2

school say it is because they do not like school, 31.5 of bottom income, middle test score respondents give this reason and 32.2 percent of bottom income, top test

score respondents give this reason.
MATHTECH, INC.

Of both low and middle income students who said that they did not plan to attend PSE because they had to 10

support their family, 65 percent were working and not attending PSE 2 years after high school.

Rigorous high school programs are defined by the courses taken, as shown in the high school transcript. 11

Students who take at least 4 units of English, 3 units of social studies, 3 units of science, 3 units of math, 5 units of

computer science, and 2 units of foreign languages are defined to be in a rigorous academic track.

SECTION V. FACTORS RELATED TO PSE ATTENDANCE 27

the middle income, top test score group and less than 1 percent of the top income, top test score

group. In short, low income students are more likely to put off their education, and they are 10

more likely to report a lack of financial resources as the cause.

B. WHAT FACTORS ARE ASSOCIATED WITH A GREATER LIKELIHOOD OF

ATTENDING PSE?

In addition to demographics, discussed in Section IV, we expect the following four

general factors to be related to PSE attendance:

C Academic preparation (e.g., high school program)

C Course-taking behavior

C Educational expectations

C Behavioral variables

The beginning of this section describes data on these four areas, and the second half presents

results of multivariate models that contain variables from all of these areas, as well as

demographic data.

B1. What Is the Relationship between Academic Preparation and PSE Attendance?

The type of high school program an individual participates in is expected to be correlated

with whether he or she attends PSE. Table 7 examines high school program and PSE attendance

by income. As expected, those in rigorous academic programs are more likely to attend PSE.11

Even among low income students, almost 90 percent who took a rigorous academic program went

to PSE. Although the differences by income are fairly small when controlling for high school

program type, this is a lower rate of participation than for higher income students taking a rigorous

academic program. For example, 87.5 percent of the bottom income students in the rigorous

academic program attend PSE, as compared with 93 percent of the middle income students and
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 28

Table 7

TYPE OF HIGH SCHOOL PROGRAM

AND POSTSECONDARY EDUCATION ATTENDANCE

BY FAMILY INCOME1

High School % in each Low Income Middle Income High Income

Program program3

No 4-Yr 4-Yr <4-Yr <4-Yr No 4-Yr 4-Yr <4-Yr <4-Yr No 4-Yr 4-Yr <4-Yr <4-Yr

PSE public private public private PSE public private public private PSE public private public private 2

Rigorous 18.2 12.5 45.4 16.8 21.4 3.9 7.0 47.0 21.0 20.6 4.4 3.6 52.4 28.7 14.9 0.4

academic

Academic 43.7 33.9 24.0 6.9 30.1 5.2 19.5 31.3 12.9 32.7 3.6 6.5 38.1 25.0 27.1 3.3

Vocational 5.2 73.7 2.5 2.5 15.5 6.0 61.7 3.5 1.2 29.2 4.3 58.7 6.4 4.7 27.1 3.1

Academic/ 6.2 55.7 9.5 3.4 23.6 7.8 32.8 16.6 3.4 41.5 5.7 31.0 22.7 8.6 35.2 2.5

vocational

None of the 26.0 80.1 3.2 1.2 11.9 3.6 61.1 6.4 2.4 24.5 5.7 41.0 19.5 5.2 29.8 4.4

above

While this analysis does include dropouts, almost all of the dropouts were in the “none of the above” category. 1

The less than 4-year private category includes private for profit schools with an unspecified time length. 2

Additionally, 0.7 were classified to be in vocational and rigorous academic. 3
MATHTECH, INC.

 This analysis includes dropouts who may have left high school before they had the opportunity to take some 12

of these courses.

SECTION V. FACTORS RELATED TO PSE ATTENDANCE 29

96.4 percent of the top income students. Likewise, controlling for being in the rigorous academic

program, the low income students are less likely to attend a 4-year institution, and are more likely

to attend a less than 4-year school than their higher income counterparts.

B2. What Is the Relationship between Course-Taking Behavior and PSE Attendance?

Above we found that the type of high school program a student is enrolled in is related to

PSE attendance. Here we examine the relationship between individual courses taken and PSE

attendance.

Table 8 examines high school courses and PSE attendance by family income. Individuals in

the top family income group are more likely than those in lower income groups to take the math and

science courses associated with PSE attendance. These courses include calculus, pre-calculus,

algebra, geometry, physics, chemistry, and biology. For example, only 46 percent of low income

students took geometry in high school, while 69 percent of middle income students and 82 percent

of high income students did.12

There is also evidence that students who take advanced math and science courses are

more likely to go to college. For example, 76 percent of low income students who took algebra

II in high school went on to college, while only 32 percent of low income students who did not

take algebra II went to college. 

While the relationship between taking advanced courses and PSE attendance is strong for

all students, the correlation appears to be greater for lower income students. For example, taking

chemistry in high school is associated with a greater likelihood that a student will go to college. 

The difference in the rate of college-going between those who do and do not take chemistry in

high school is greater for low income students (79 percent versus 31 percent) than for middle

income students (89 percent versus 50 percent) or high income students (95 percent versus 68

percent).
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 30

Table 8

HIGH SCHOOL CURRICULUM

AND POSTSECONDARY EDUCATION ATTENDANCE

BY FAMILY INCOME1

Type of Courses Was course

taken?

Family Income

Bottom Middle Top

% Taking % Who % Taking % Who % Taking % Who 

course attend PSE course attend PSE course attend PSE

Calculus Yes 4.6 93.8 9.1 93.5 17.7 99.4 2

No 95.4 44.5 90.9 68.3 82.3 84.8

Pre-calculus Yes 7.1 91.9 14.5 94.9 25.8 98.2

No 92.9 43.4 85.6 66.5 74.2 83.6

Algebra 1 Yes 77.8 58.0 88.8 75.0 93.8 90.5 3

No 22.2 15.4 11.2 41.1 6.2 50.4

Algebra 2 Yes 34.0 75.9 51.3 85.5 62.1 94.7

No 66.0 31.9 48.7 54.9 37.9 75.3

Geometry Yes 46.2 70.7 69.1 83.6 81.6 93.9

No 53.9 26.4 30.9 41.6 18.4 58.5

Physics Yes 12.9 83.5 23.0 91.4 38.0 97.6

No 87.1 41.4 77.0 64.4 62.0 81.1

Chemistry Yes 33.3 79.2 52.2 89.1 71.6 95.1

No 66.7 30.7 47.8 50.4 28.4 67.8

Biology Yes 81.1 53.9 89.3 74.3 94.9 89.1

No 19.0 16.5 10.7 40.0 5.1 54.4

Foreign language Yes 52.4 67.5 71.8 81.2 85.9 93.3

No 47.6 24.1 28.2 43.7 14.1 51.2

Vocational Yes 26.8 47.1 25.1 65.7 18.2 81.5

No 73.3 46.7 74.9 72.3 81.8 88.7

Technical Yes 1.2 48.7 1.7 83.8 1.7 92.6

No 98.8 46.8 98.3 70.4 98.3 87.3

Basic skills Yes 22.4 46.0 19.9 66.1 15.2 83.1

No 77.6 47.1 80.1 71.7 84.8 88.1

This analysis includes dropouts. 1

An example of how to read this table is that 4.6 percent of the bottom income group of students who were eighth 2

graders in 1988 take calculus. Of those students in the bottom income group who take calculus, 93.8 percent attend

PSE. Of those students in the bottom income group who do not take calculus, 44.5 percent attend PSE.

Algebra 1 includes students who took the course in eighth grade (as self-reported) or in high school (as reported in 3

their transcript).
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 31

Even when course-taking patterns are accounted for, income effects on PSE attendance 

remain. For example, within the group of all students who take geometry, higher income students

are more likely to attend PSE than middle income students (94 percent versus 84 percent) or low

income students (94 percent versus 71 percent).

The previous analysis showed that courses taken in high school are strongly related to the

probability of attending PSE. Here we examine the relationship between courses attended in

eighth grade and PSE attendance, as these courses lay groundwork for courses that can be taken

in high school.

Table 9 examines classes attended at least once per week by eighth graders and PSE attendance, by family income. Students who take algebra I or who take science laboratory at least

once a week in eighth grade are more likely to attend PSE than those who do not, and individuals

with higher income are more likely to be taking these courses. The relationship between taking

algebra I in the eighth grade and attending PSE is greater for the low income students than for

middle or high income students. (But low income students are less likely to take algebra 1 in the

eighth grade.) The rate of college attendance is 20 percentage points higher for low income

students who take algebra I as compared to those who do not (61 percent as compared to 40

percent) compared to only 15 percentage points for middle income students (78 percent as

compared to 64 percent) and 10 percentage points for high income students (91 percent as

compared to 81 percent). However, even accounting for the course-taking behavior of eighth

graders, income effects remain. The high income students who take algebra are more likely than

the low income students who take algebra to attend PSE. While 61 percent of the low income

students who take algebra attend PSE, 78 percent of the middle income students who take algebra

attend PSE, and 91 percent of the top income students who take algebra attend PSE.

B3. What Is the Relationship between Educational Expectations and PSE Attendance?

Educational expectations, which are formed early in the school experience, are highly

correlated with PSE attendance. Table 10A explores educational expectations in eighth grade and

PSE attendance associated with those expectations. Over 65 percent of eighth graders
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There is also a slight decline in expectations over time. In the eighth grade, 43 percent expected to receive a 13

bachelor’s degree (and 23 percent a master’s degree or higher), while in the 12th grade (not shown in table), 32 percent

were expecting to receive a bachelor’s degree (and 30 percent a master’s degree or higher).

SECTION V. FACTORS RELATED TO PSE ATTENDANCE 32

Table 9

CLASSES REPORTED TO BE ATTENDED AT LEAST ONCE PER WEEK 

BY EIGHTH GRADERS AND PSE ATTENDANCE

BY FAMILY INCOME1

Type of Course Was course Family Income

taken? Bottom Middle Top

% of % Who % of % Who % of % Who

Students attend Students attend Students attend

PSE PSE PSE

Remedial math Yes 9.7 27.0 6.3 58.3 6.1 73.1 2

No 90.3 47.0 93.7 69.9 93.9 86.9

Regular math Yes 76.4 41.1 67.1 66.2 53.6 82.1

No 23.6 54.3 32.9 75.3 46.4 90.3

Algebra 1 Yes 28.6 61.3 39.2 78.4 54.3 90.7 3

No 71.4 39.6 60.8 63.5 45.7 80.9

Science laboratory Yes 24.0 50.8 29.7 72.2 37.7 90.5

No 76.0 44.4 70.3 67.8 62.3 83.7

Science Yes 60.4 43.3 60.6 67.9 59.4 84.2

No 39.6 46.6 39.4 71.1 40.6 88.6

Biology Yes 18.1 47.6 19.8 67.4 19.0 88.1

No 81.9 45.2 80.3 69.9 81.0 85.8

Earth science Yes 54.3 44.8 50.3 69.6 47.6 87.5

No 45.7 46.0 49.7 69.5 52.4 85.1

This analysis includes dropouts. 1

An example of how to read this table is that 9.7 percent of the bottom income students take remedial math. Of those 2

students in the bottom income group who take remedial math, 27 percent attend PSE.

Numbers for regular math, remedial math, and algebra do not sum to 100 because some students take more than one 3

type of math.

expected to complete at least a bachelor’s degree while an additional 13 percent expected to

attend college. The higher one’s educational expectations, the more likely one is to attend PSE.

While 19 percent of eighth graders who expect to just graduate high school actually attend PSE,

73 percent of those who in eighth grade expect to obtain a bachelor’s degree attend college, and

83 percent of those who expect to obtain a master’s degree or higher attend college.13
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 33

Table 10B examines eighth grade educational expectations and PSE attendance by

income. Students with higher family income expect higher levels of educational attainment. 

While 51 percent of those in the bottom income group expect to complete a bachelor’s degree or

higher, 69 percent in the middle income group and 85 percent in the top income group expect to

complete a bachelor’s degree or higher. Even among those students who expect to complete a

bachelor’s degree, high income students are more likely to attend PSE than are low income

students. While 58 percent of bottom income students who expect to complete a bachelor’s

degree attend PSE, 75 percent of middle income and 90 percent of top income students who

expect to complete a bachelor’s degree attend PSE.

Table 10A

EIGHTH GRADE EDUCATIONAL EXPECTATIONS AND PSE ATTENDANCE1

% % Attending PSE

Less than high school 1.5 20.9

High school graduate 10.4 19.4

Trade school 9.2 36.5

Some college 13.2 51.4

Bachelor’s degree 43.1 73.4

Master’s degree or higher 22.6 83.1

This analysis includes dropouts. 1

Table 10B

EIGHTH GRADE EDUCATIONAL EXPECTATIONS AND PSE ATTENDANCE

BY INCOME1

Bottom Income Middle Income Top Income

% % % % % % 

Attending Attending Attending

PSE PSE PSE

Less than high school 2.2 13.3 1.0 48.8 1.2 *

High school graduate 16.9 15.6 7.6 26.7 3.8 31.1

Trade school 13.1 27.7 8.9 46.5 3.3 53.4

Some college 16.8 42.7 13.2 55.8 7.1 73.8

Bachelor’s degree 36.7 57.8 47.0 75.4 48.1 90.2

Master’s degree or higher 14.3 65.4 22.4 86.4 36.5 92.9

* Too few observations to make any inferences.
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 34

This analysis includes dropouts. 1

B4. What Is the Relationship between Behavioral Factors and PSE Attendance?

Student behaviors such as drug and alcohol use, hours spent watching television, skipping

or cutting classes, and hours spent doing homework are also factors related to PSE attendance. 

Table 11A explores these factors for the full sample of students. In most cases, individuals who

participate in the harmful behaviors are less likely to attend PSE. For example, for 10th graders

that used marijuana more than twice in the past 12 months, 48 percent went on to PSE. This

compares to 69 percent of 10th graders who did not use marijuana in the past year. However, it

is interesting to note that students who drank alcohol more than twice in the past 12 months were

not significantly less likely to attend PSE than those who did. Table 11B explores the same

relationships for the low income, high test score students. Among this sample, 52 percent of

students who used marijuana attend PSE, and 78 percent of students who did not use marijuana

attend PSE.

Table 11A

POSTSECONDARY EDUCATION ATTENDANCE

BY BEHAVIOR AND ATTITUDES1

Grade2

Students Who Did Students Who Did Not

% % Who go to % % Who go to

PSE PSE

Drank alcohol more than twice in 10th 39.1 65.1 60.9 69.1

the past 12 months3

12th 51.7 70.9 48.3 72.2

Used marijuana more than twice 10th 7.1 47.9 92.9 69.4

in the past 12 months 12th 10.0 62.0 90.0 73.1

Watched 3 or more hours of TV 10th 31.4 58.3 68.6 71.5

per day on weekdays 12th 27.3 64.1 72.7 75.8

Skipped or cut classes 10th 15.6 50.1 84.4 69.2

12th 25.8 63.0 74.2 73.5

Spent less than 5.5 hours per 10th 48.5 59.9 51.5 74.3

week on homework 12th 24.4 61.5 75.6 74.7

This analysis includes dropouts. 1

Eighth grade data are available for hours of television, skipped classes, and hours of homework. 2

An example of how to read this table is that in the 10th grade 39 percent of the students reported that they 3

drank alcohol more than twice in the past 12 months. Of those students who drank alcohol more than twice in
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 35

the past 12 months, 65 percent attend PSE. Of those students who did not drink alcohol more than twice in the

past 12 months, 69 percent attend PSE.

Table 11B

POSTSECONDARY EDUCATION ATTENDANCE

BY BEHAVIOR AND ATTITUDES

FOR LOW INCOME, HIGH TEST SCORE STUDENTS1

Grade

Students Who Did Students Who Did Not

% % Who go to % % Who go to

PSE PSE

Drank alcohol more than twice in 10th 38.5 71.4 61.5 78.6

the past 12 months 12th 50.7 77.1 49.3 78.4

Used marijuana more than twice 10th 5.9 51.9 94.1 78.2

in the past 12 months 12th 8.9 64.6 91.1 79.0

Watched 3 or more hours of TV 10th 27.5 68.4 72.5 78.3

per day on weekdays 12th 25.5 68.4 74.5 80.5

Skipped or cut classes 10th 13.2 61.0 86.8 78.1

12th 22.2 71.4 77.8 79.5

Spent less than 5.5 hours per 10th 37.8 66.1 62.2 81.4

week on homework 12th 20.1 63.2 79.9 81.3

 This analysis includes dropouts. 1

Table 12A displays marriage, childbearing behavior, and PSE attendance of all students. 

Students who are married, have children, or expect these events by age 21 are less likely to attend

PSE than those who do not. For example, for students who expected to be married by age 21, 46

percent went on to PSE. This compares to 76 percent of students who did not expect to be

married by age 21. Table 12B shows the same relationships for the low income, high test score

sample.

Table 12A

POSTSECONDARY EDUCATION ATTENDANCE

BY MARRIAGE AND CHILDBEARING BEHAVIOR1

Students Who Were Students Who Were Not

% % Who go to % % Who go to

PSE PSE

Married by second follow-up 1.7 36.1 98.3 72.1 2

Expected to be married by age 21 14.3 45.8 85.7 76.1 3

Had child by second follow-up 4.5 31.5 95.5 72.5

Expected to have child by age 21 8.2 36.3 91.8 75.2

This analysis does not include dropouts. 1
Pr(PSE|x

t

)'

e

B

)

x

1%e

B

)

x

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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 36

An example of how to read this table is that 2 percent of the students were married by the second follow-up survey. 2

Of those students who were married by the second follow-up survey, 36 percent attend PSE. Of those students who

were not married by the second follow-up survey, 72 percent attend PSE.

This number includes those who are already married, and the number of those who expect to have a child by age 21 3

includes those who already have a child.

Table 12B

POSTSECONDARY EDUCATION ATTENDANCE

BY MARRIAGE AND CHILDBEARING BEHAVIOR

FOR LOW INCOME, HIGH TEST SCORE STUDENTS1

Students Who Were Students Who Were Not

% % Who go to PSE % % Who go to PSE

Married by second follow-up 1.4 * 98.6 78.3 1

Expected to be married by age 21 12.3 64.5 87.7 80.3 2

Had child by second follow-up 2.2 * 97.8 78.9

Expected to have child by age 21 5.5 44.6 94.5 80.3

* Too few observations to draw inferences.

This analysis does not include dropouts. 1

C. USING A MULTIVARIATE FRAMEWORK, WHAT FACTORS ARE RELATED

TO PSE ATTENDANCE?

This section attempts to better define the factors important for college enrollment. While

the descriptive information provides key data on factors related to PSE attendance, many of the

factors examined are correlated with one another. To identify the dominant factors in the

determination of PSE attendance, we study the problem in a multivariate framework, where we

can examine the effect of each variable on PSE attendance, holding all other factors constant. 

The probability that an individual attends PSE is

In this equation, x is a vector of the characteristics of the person making the choice. Most t 

educational choice models relate the choice to the future earnings and benefits that stem from the

choice. However, the NELS data contain little or no information on future earnings and, even in

the most recent wave of the survey, the respondents are just beginning their postsecondary

careers. Furthermore, recent research by Manski (1993) raises questions about the ability of
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We use the characteristics of the “individual” in the broadest sense so that it includes characteristics of the 14

individuals’ families, communities, and attended schools.

This is a count of the number of the following courses that the student took: pre-calculus, calculus, biology, 15

chemistry, physics, and foreign language. This information comes from the NELS transcript file.

SECTION V. FACTORS RELATED TO PSE ATTENDANCE 37

educational choice models to separately identify the roles of individual expectations about future

earnings and the individual’s academic ability.

Because of the difficulties in estimating an educational choice model in the tradition of

Willis and Rosen (1979), Manski and Wise (1983), and others, we estimate what may be thought

of as a reduced form educational choice model. The independent variables include only characteristics of the individuals making the choice. We will be unable to determine the motivation for 14

the student’s choice, but we will be able to determine the ultimate importance of the individual’s

characteristics in making the choice.

In this model, x includes demographic variables, such as gender, marital status, whether

the student has children, race, and information on the student’s family; academic factors;

behavioral factors; and characteristics of the student’s high school. The variables included in the

model are:

C Asian, Hispanic, Black, and Native American are the controls included for race. The

omitted comparison group is White.

C Information on the student’s family includes whether the parents’ highest education

level is a bachelor’s degree or higher, indicator variables for family income

categories, and family size. 

C High school academic characteristics of the student include test score, the number of

college preparatory courses taken, whether the student was in a college 15

preparatory program in high school, and whether the student expected to achieve an

education level of a bachelor’s degree or higher. 

C Behavioral variables of the student include whether the student used alcohol and

marijuana more than twice in the past year, the hours of television the student

watches on weekdays, and the hours of homework the student does. 

C Characteristics of the high school include whether it is in an urban or suburban area

(where the omitted comparison group is rural area), what region the school is in
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The odds ratio is calculated as the coefficient in the logit model multiplied by the probability of attending PSE 16

(evaluated at the mean of the sample) and by the probability of not attending PSE (or one minus the probability of

attending PSE). This can be written as $*{P(Y=1)}*{P(Y=0)} where $ is the coefficient estimated in the logit model.

SECTION V. FACTORS RELATED TO PSE ATTENDANCE 38

(where the included regions are Northeast, Midwest, and South, and the omitted

comparison group is West), and whether the school is a Catholic school or another

type of private school (where the omitted comparison group is public school.) 

C Also considered are interactions between whether the individual was in the low

income, high score test sample and the following variables: female; whether the

parents’ highest degree is a bachelor’s degree or higher; family size; number of hours

of television watched; number of hours spent on homework; whether the school is in

an urban area; whether the student went to a Catholic school; and whether the

student went to another type of private school. These interactions indicate the

additional effect these factors have for the low income, high test score sample over

and above the effect they have for the sample as a whole.

Table 13 presents results from a logit model which predicts PSE attendance. The number

of observations used in this analysis is smaller than the original 13,120 due to item non-response. 

The dependent variable is a zero-one variable, with one equal to PSE, and zero equal to no PSE

attended. Results are weighted and corrected for survey sampling techniques. The results are

shown as odds ratios, which are the change in the likelihood of attending PSE as the variable in

question changes by one unit. In the text, we discuss only the effects that are statistically 16

significant.

C1. What Factors Are Important for the Group as a Whole?

Demographic Results: The results show that, all other things equal, women are 50 percent

more likely than men to attend PSE. As expected, respondents whose parents received a bachelor’s

degree or higher are more likely to attend PSE; students in the lowest income group are least likely

to attend PSE; and students in the highest income group are most likely to attend PSE.

Other things equal, including income and test score, race does not have a statistically significant effect on PSE attendance. In other words, for students in similar income and test groups, and

with other similar demographic characteristics – such as parental education, high school type and
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 39

location, academic performance, and educational expectations – there are no significant differences

in PSE attendance rates by race. However, race is correlated with some of these variables.

Table 13

LOGIT: FACTORS DETERMINING COLLEGE ENROLLMENT PATTERNS1

Variable (T-Statistic)

Odds Ratio

Female 1.51**

(4.47)

Female* low income high test score sample 1.55 2

(1.51)

Asian 1.06

(0.27)

Hispanic 1.05

(0.36)

Black 0.98

(-0.10)

Native American 0.73

(-0.90)

Married 0.92

(-0.29)

Children 0.52**

(-3.23)

Parents received bachelor’s 1.84**

(4.99)

Parents received bachelor’s* low income, high test 2.10

score sample (1.61)

#

Low income, high test score group 1.51

(0.71)

Lowest income group 0.68**

(-3.65)

Highest income group 1.44**

(2.62)

Family size 0.97

(-0.85)

Family size, low income* high test score sample 0.87

(-1.42)

Test score 1.03**

(4.53)

College preparatory courses 1.45**

(7.17)

College courses missing 1.33

(1.63)

College preparatory program 2.00**

(6.50)
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Variable (T-Statistic)

Odds Ratio

SECTION V. FACTORS RELATED TO PSE ATTENDANCE 40

Expect bachelor’s degree 3.60**

(13.62)

Alcohol > twice past year 1.03

(0.28)

Alcohol missing 1.11

(0.57)

Marijuana > twice past year 0.63**

(-2.94)

Marijuana missing 0.90

(-0.82)

Hours of TV weekdays 0.97

(-0.79)

TV* low income, high test score sample 0.82#

(-1.80)

Hours of homework 1.01

(0.52)

Homework* low income, high test score sample 1.24*

(2.47)

Urban area school 1.01

(0.10)

Urban* low income, high test score sample 0.44*

(-2.41)

Suburban area school 1.10

(1.08)

Northeast 1.08

(0.54)

Midwest 1.08

(0.57)

South 1.00

(0.00)

Catholic school 1.66*

(2.30)

Catholic school* low income, high test score sample 4.72#

(1.71)

Private school 2.13*

(2.44)

Private school* low income, high test score sample 0.18

(-1.36)

Dropouts are not included in this analysis * Designates significance at the .05 level.. 1

Designates an interaction with the low income, high test Designates significance at the .10 level. 2 #

score sample. ** Designates significance at the .01 level.

Academic Preparation and Course-Taking Results: In terms of academic preparation, an

extra point on the standardized test increases the likelihood of attending PSE by 3 percentage
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When we say that a particular characteristic increases the likelihood of attending PSE we mean that the 17

characteristic is associated with an increased likelihood of attending PSE. Causality cannot be inferred because of

possible selection effects.

SECTION V. FACTORS RELATED TO PSE ATTENDANCE 41

points (where the mean test score is 50 and the standard deviation is 10), taking college 17

preparatory classes increases the likelihood of PSE attendance by 45 percent, and being in a

college preparatory program increases the likelihood of PSE attendance by 100 percent.

There also appears to be a difference in PSE attendance between public and private school

attendees. Individuals who attend Catholic school are 66 percent more likely to attend PSE than

those who attend public school, and respondents who attend other private schools are 113 percent

more likely to attend PSE than those who attend public school. These results, in themselves, are

not an argument that private schools are of superior quality to public schools. While we do

observe correlations between private schools and PSE attendance, unobserved variables

correlated with private school attendance may bias these results. For example, individuals whose

parents are more concerned and involved in their children’s education may choose to send their

children to private school if they do not believe that the public schools are of high enough quality. 

Therefore, children whose parents value education may be more likely to go to private school. 

But parental concern about education is probably correlated with PSE attendance, and this may be

the result that is measured by the private school variables. Because all of the possible

confounding variables are not available to be used as controls in the model, it is not possible to

determine the cause of increased PSE attendance without a controlled experiment.

Expectations and Behavioral Results: Expecting to receive a bachelor’s degree increases

the likelihood of attending PSE by 260 percent. Behavior also has the expected relationship to

PSE attendance. Respondents with children are less likely to attend PSE. Use of marijuana more

than two times in the past year decreases the likelihood of attending PSE by nearly 40 percent. 

However, hours spent watching television and hours spent doing homework are not significantly

related to PSE attendance for the group as a whole.
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 42

C2. What Factors Are Especially Important for Low Income, High Test Score Students?

To determine the effects of these factors on just the low income, high test score group, we

can examine the magnitude and significance of interactions between these variables and the low

income, high test score sample. The data in Table 13 show that watching television, doing an

extra hour of homework, and living in an urban area are all statistically significant for the low

income, high test score group, but not for the overall group of students. Watching an extra hour

of television per evening decreases the likelihood of attending PSE by 15 percent for the low

income, high test score sample, and doing an extra hour of homework increases the likelihood of

attending PSE by 27 percent for the low income, high test score sample. Low income, high test

score respondents who live in urban areas are 56 percent less likely to attend PSE than those who

live in rural areas. Differences for low income, high test score students who attend Catholic

schools are even larger than for the sample as a whole.

D. USING A MULTIVARIATE FRAMEWORK, WHAT FACTORS ARE RELATED

TO THE TYPE OF PSE ATTENDED?

Next we increase the choices to separately model five distinct PSE attendance choices. 

Table 14 separately examines the probability of attending a 4-year public, 4-year private, less than

4-year public, and less than 4-year private institution. Here, the dependent variable is an indicator

for whether the respondent attended no PSE or one of the four types of institutions listed above. 

Because this model requires a multinomial logit, survey corrected results are not available. 

However, results are weighted. 

Women are more likely than men to attend all four types of schools, but the largest

difference is seen in the less than 4-year private schools. Women are 150 percent more likely to

attend less than 4-year private schools than are men. Women in the low income, high test score

sample are much more likely than men to attend 4-year public institutions. Blacks are more likely

than Whites to attend 4-year private institutions. Respondents whose parents received a

bachelor’s degree or higher are most likely to attend a 4-year private institution. 
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 43

Higher test scores, taking college preparatory courses, being in a college preparatory

program, and expecting a bachelor’s degree or higher are associated with increased attendance at

all four types of schools, but increase the likelihood of attending a 4-year private institution by the

largest amount. Attending a Catholic school is associated with increased attendance at all types

of schools except less than 4-year private, and attending another type of private high school is

correlated with attending a 4-year private or less than 4-year public institution.

Table 14

MULTINOMIAL LOGIT: TYPE OF POSTSECONDARY INSTITUTION ATTENDED1

Variable

Odds Ratio

(T-statistic)

4-Year public 4-Year private < 4-Year public < 4-Year private

Female 1.34** 1.72** 1.42** 2.48**

(3.66) (5.67) (5.04) (7.01)

Female* low income, high test score sample 2.05* 1.39 1.44 1.26 2

(2.55) (1.00) (1.32) (0.45)

Asian 1.02 0.98 1.02 1.56

(0.08) (-0.09) (0.08) (1.32)

Hispanic 1.08 1.10 0.96 1.52*

(0.56) (0.53) (-0.34) (2.04)

Black 1.32* 1.69** 0.74* 1.47

(2.13) (3.16) (-2.56) (1.87)

#

Native American 0.97 0.61 0.82 0.00

(-0.08) (-0.85) (-0.62) (0.00)

Married 0.98 0.43 0.72 1.49

(-0.06) (-0.99) (-1.17) (1.08)

Children 0.21** 0.34* 0.57** 0.79

(-4.84) (-2.41) (-3.38) (-0.92)

Parents received bachelor’s 2.38** 3.27** 1.37** 1.77**

(8.51) (10.02) (3.28) (3.51)

Parents received Bachelor’s* low income, high test 1.50 2.04 2.17 3.74*

score sample (0.90) (1.52) (1.74) (2.14)

#

Low income, high test score group 0.93 1.84 1.79 2.79

(-0.13) (0.88) (1.05) (0.99)

Lowest income group 0.77* 0.68* 0.63** 0.81

(-2.50) (-2.55) (-5.64) (-1.38)

Highest income group 1.60** 1.67** 1.28* 1.24

(4.30) (4.11) (2.45) (1.19)

Family size 0.96 1.01 0.96 1.01

(-1.45) (0.21 (-1.52) (0.29)

Family size* low Income, high test score sample 0.89 0.89 0.87 0.69*

(-1.36) (-1.19) (-1.67) (-1.91)

Test score 1.06** 1.08** 1.01 1.02**

(10.02) (10.39) (1.87) (2.73)

#
MATHTECH, INC.

Variable

Odds Ratio

(T-statistic)

4-Year public 4-Year private < 4-Year public < 4-Year private

SECTION V. FACTORS RELATED TO PSE ATTENDANCE 44

College preparatory courses 1.81** 1.82** 1.32** 1.18*

(14.08) (12.14) (7.41) (2.54)

College courses missing 3.03** 2.63** 1.01 0.67

(7.33) (4.90) (0.07) (-1.66)

#

College preparatory program 2.41** 2.45** 1.70** 1.52**

(10.09) (8.52) (6.48) (2.83)

Expect bachelor’s degree 9.13** 9.42** 2.81** 0.83

(21.43) (13.92) (14.10) (-1.36)

Alcohol > twice past year 1.08 0.79* 1.05 1.01

(0.95) (-2.42) (0.69) (0.08)

Alcohol missing 1.53* 1.46 0.91 1.19

(2.23) (1.62) (-0.59) (0.59)

Marijuana > twice past year 0.60** 0.44** 0.70** 0.55**

(-3.76) (-4.48) (-3.07) (-2.63)

Marijuana missing 0.68** 0.60** 1.09 0.89

(-2.79) (-2.82) (0.74) (-0.54)

Hours of TV weekdays 0.95 0.92* 0.99 0.99 #

(-1.75) (-2.25) (-0.56) (-0.19)

TV* low income, high test score sample 0.81 0.76* 0.83 0.80 #

(-1.91) (-2.09) (-1.69) (-1.40)

Hours of homework 1.03 1.05 1.00 0.97

(1.29) (1.88) (-0.10) (-0.73)

#

Homework* low income, high test score sample 1.27** 1.26** 1.20* 1.33**

(2.97) (2.65) (2.35) (2.04)

Urban area school 0.80 0.83 1.07 1.32 #

(-1.94) (-1.30) (0.71) (1.48)

Urban* low income, high test score sample 0.49* 0.38* 0.33** 1.06

(-2.24) (-2.56) (-3.48) (0.12)

Suburban area school 0.77** 0.79* 1.20* 1.70**

(-2.88) (-2.16) (2.33) (3.67)

Northeast 1.65** 3.91** 0.65** 1.62*

(3.88) (9.23) (-3.74) (2.44)

Midwest 1.74** 1.77** 0.78* 1.38

(4.73) (3.97) (-2.51) (1.76)

#

South 1.48** 1.13 0.86 0.94

(3.51) (0.88) (-1.66) (-0.36)

#

Catholic school 1.55* 2.65** 1.55* 1.16

(2.18) (4.49) (2.26) (0.42)

Catholic school* low income, high test score sample 8.80 4.81 2.11 0.00 #

(1.94) (1.34) (0.59) (0.00)

Private school 1.38 4.50** 2.18** 1.63

(1.12) (5.18) (2.87) (0.99)

Private school* low income, high test score sample 0.12 0.13 0.15 0.00

(-1.58) (-1.65) (-1.38) (0.00)

Dropouts are not included in this analysis * Designates significance at the .05 level.. 1

Designates an interaction with the low income, high test Designates significance at the .10 level. 2 #

score sample. ** Designates significance at the .01 level.
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SECTION V. FACTORS RELATED TO PSE ATTENDANCE 45

E. A SUMMING UP AND SYNTHESIS OF THE FINDINGS FROM THIS SECTION

Both the descriptive findings and the multivariate model results point to the importance of

four general factors in determining PSE attendance: academic preparation, course-taking

behavior, educational expectations, and behavioral variables. However, even holding all of these

factors constant, income effects remain. For example, even within the entire group of students in

a rigorous academic high school program, or within the entire group of students taking advanced

math or science courses in high school, low income students are still less likely to attend PSE than

their higher income counterparts. However, differences among income groups drop significantly

when we control for academic preparation or test score.

The importance of income effects on PSE attendance, controlling for other characteristics,

is also illustrated in the logit model. In the multivariate regression model — which controls for

academic preparation, course-taking behavior, educational expectations, and behavioral variables

— income still has a statistically significant effect on PSE attendance. Those in the highest

income group are 43 percent more likely to attend PSE and those in the lowest income group are

32 percent less likely to attend PSE, relative to the middle income group. This suggests that

financial constraints to college may be more binding for the low income students.

These findings also illustrate the importance of early intervention on PSE attendance. 

Students form their educational expectations early, and courses taken early on in high school and

junior high (or middle school) are closely related to PSE attendance. This indicates that by the

end of high school it may be too late to attempt to inform students of the importance of a college

education. Rather, information on the importance of college and the requirements for college

admission should be distributed to students and their parents as early as possible in the educational

system. Additional research should be done in this area. One possible topic that could be

explored further in the NELS:88 database is factors related to the determination and the evolution

of educational expectations from the eighth grade through the 12th grade.
MATHTECH, INC.

SECTION VI. THE ROLE OF FINANCIAL AID 46

VI. THE ROLE OF FINANCIAL AID

This section discusses the role of financial aid in PSE attendance. We discuss parents’ and

students’ attitudes toward financial aid and college expenses, use of available resources to obtain

information about financial aid, and reasons students do not apply for financial aid. We then

examine the effect of being offered financial aid on PSE attendance in a multivariate framework. 

Lastly, we predict expected financial aid for all students using the NPSAS data set, and examine

the effect of predicted financial aid on PSE attendance.

A. HOW DO PARENTS PERCEIVE COLLEGE EXPENSES AND FINANCIAL

AID?

Parental views on financial aid and their ability to afford a college education are likely to 

have a large effect on students’ expectations about their education and, ultimately, their PSE

attendance. Table 15 examines parental attitudes toward college expenses and financial aid when

their children are in eighth grade. Of the parents, 17 percent say they are not willing to go into

debt for their child’s schooling, and 13 percent say there is too much paperwork required to apply

for financial aid. Nearly one-quarter of the parents say they have not been able to get much

information about financial aid. Over 11 percent of the parents say they do not believe they will

be able to get enough money to allow their child to go to college.

The percentage of parents with these opinions declines, in general, as income and test

score increase. Of parents with children in the top test score, bottom income group, 25 percent

say they have not been able to get much information on how to apply for financial aid, while 21

percent of those in the top test score, middle income group and 14 percent of those in the top test

score, top income group said this was true. Interestingly, among low income students, the

percentage of parents indicating they did not see any way of getting enough money for college

declined substantially as test scores increased. Within the bottom income group, 28 percent of the

low test score group parents said they did not see any way of getting enough money for college,
MATHTECH, INC.

As expected, bottom income group students and parents are most likely to view college expenses and 18

financial aid as an important element in their choice of college. Whereas 26 percent of top income group parents view

financial aid as very important, 57 percent of middle income group parents view financial aid as very important, and 80

percent of bottom income group parents view financial aid as very important in choosing a college.

SECTION VI. THE ROLE OF FINANCIAL AID 47

but only 20 percent of those in the middle test score group and only 12 percent of those in the top

test score group said this was true.18

Table 15

PARENTAL ATTITUDES TOWARD COLLEGE EXPENSES AND FINANCIAL AID:

PERCENTAGE OF PARENTS ANSWERING TRUE1

Full

sample

Bottom Family Income Middle Family Income Top Family Income

Bottom Middle Top Bottom Middle Top Bottom Middle Top 

test test test test test test test test test

score score score score score score score score score

The family is not 16.5 19.4 16.8 15.3 13.5 15.8 16.5 13.6 18.4 16.5

willing to go into debt

for schooling

Too much paperwork is 13.0 15.1 13.0 10.2 15.6 11.8 11.4 13.7 13.9 12.9

required to apply for

financial aid

I have not been able to 23.8 32.2 29.8 25.4 25.7 25.9 20.6 18.6 15.9 14.2

get much information

on how and where to

apply for financial aid 

I do not see any way of 11.4 28.0 19.8 12.4 9.8 9.1 5.7 2.2 7.1 2.8

getting enough money

for my eighth grader to

go to college

Note: questions are asked of parents in 1988 when their child is in the eighth grade.

 Dropouts are included in this analysis. 1

Next we analyze the relationship between these attitudes and PSE attendance. For certain

income and test score groups these parental attitudes appear to be somewhat related to PSE

attendance. As indicated in Table 16, for both the bottom and top income groups, middle test

score students whose parents say they are not willing to go into debt for college are less likely to

attend PSE than those who have parents who do not indicate they are debt averse. Table 16
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SECTION VI. THE ROLE OF FINANCIAL AID 48

shows that while 46 percent of those in the bottom income, middle test group who say they are not willing to go into debt for college

expenses, have children who attend PSE, 55 percent of those parents who

Table 16

PARENTAL ATTITUDES TOWARD COLLEGE EXPENSES AND FINANCIAL AID

AND PSE ATTENDANCE:

PERCENTAGE IN EACH CATEGORY ATTENDING PSE1

Bottom Family Income Middle Family Income Top Family Income

Bottom test Middle test Top test Bottom test Middle test Top test Bottom test Middle test Top test

score score score score score score score score score

True NT True NT True NT True NT True NT True NT True NT True NT True NT 2

Family not 34.1 32.2 45.9 54.8 73.9 77.1 51.5 51.5 68.3 70.2 88.1 86.9 68.5 70.2 68.9 86.1 95.9 95.6

willing to go

into debt for

schooling3

Too much 30.0 33.6 66.5 51.6 63.0 78.3 66.1 48.2 60.6 71.0 86.8 87.1 73.9 69.8 84.2 82.5 93.6 96.0

paperwork to

apply for

financial aid

I have not been 31.7 33.9 55.8 52.5 78.8 76.1 42.8 54.1 65.4 71.1 86.0 87.4 75.1 69.1 81.3 82.9 93.9 95.9

able to get

much

information on 

financial aid 

I do not see 27.1 35.2 43.1 55.8 76.7 76.9 46.1 51.5 59.7 70.6 83.1 87.3 *** 70.5 *** 86.2 *** 95.7

any way of

getting enough

money for

college

Dropouts are included in this analysis. 1

NT denotes false or “haven’t thought about.” 2
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SECTION VI. THE ROLE OF FINANCIAL AID 49

An example of how to read this table is that 34 percent of bottom income, bottom test score students whose parents say the family is not willing to go into debt for 3

college attend PSE, and 32 percent of students whose parents say the statement is false or that they have not thought about it attend PSE.

***Observations in these cells are too few to draw inferences from.
MATHTECH, INC.

Those students who answer “no” to the question, “Do you plan to continue your education past high school 19

some time in the future?” are not asked questions about reading information or speaking with someone about financial

aid. Those parents who answer “no” to the question, “Does your teenager plan to continue his/her education?” are not

asked these questions either. Students and parents are both surveyed when the student is in the 12th grade as to whether

they used these information sources.

SECTION VI. THE ROLE OF FINANCIAL AID 50

say that this is false or that they have not thought about it have children who attend PSE. Of

parents in the top income, middle test score group who say they are not willing to go into debt, 69

percent have children who attend PSE and 86 percent of parents who do not answer “true” to this

question have children who attend PSE. The fact that parents who are debt-averse have children

who are less likely to attend PSE is potentially important, because a large part of college costs are

financed through loans.

Students in the bottom income, bottom and middle test score group whose parents say

they do not see any way of getting enough money for college are less likely to attend PSE than

those who say this is not true or that they have not thought about it. While 27 percent of bottom

income, bottom test score group students whose parents say they do not see any way of getting

enough money for college attend PSE, 35 percent whose parents say this is false or have not

thought about it attend PSE. Similarly, while 43 percent of bottom income, middle test score

students whose parents say they do not see any way of getting enough money for college attend

PSE, 56 percent of those who say this is false or have not thought about it attend PSE.

 B. HOW MUCH INFORMATION DO PARENTS ATTEMPT TO OBTAIN ABOUT

FINANCIAL AID? 

Students and their parents can learn about financial aid by several avenues. These include

talking to teachers, counselors, school representatives, or loan officers, and reading information

from the U.S. Department of Education, from high schools or colleges, or from the military. 

Table 17 examines the extent to which students and their parents, among those planning to attend

college in the 12th grade, take advantage of such resources and how their use varies by family

income. We find that middle income parents and bottom and middle income students are most 19

likely to use these resources. While 55 percent of bottom income parents spoke to someone

about financial aid, 67 percent of middle income parents spoke to someone, and 62 percent of top
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SECTION VI. THE ROLE OF FINANCIAL AID 51

income parents spoke to someone. While 59 percent of students in the bottom income group read

information about financial aid, 58 percent of the students in the middle income group read

information about financial aid, and 50 percent of students in the top income group read

information about financial aid.

Table 17

KNOWLEDGE ABOUT FINANCIAL AID BY FAMILY INCOME1

Full sample

Family Income

Bottom Middle Top

Talked to teacher, counselor, school Student 74.8 77.3 78.0 66.8

representative, loan officer, or knowledgeable

adult about financial aid

2

Parent 61.6 54.8 67.2 61.7

Read information from U.S. Department of Student 56.5 59.4 58.3 49.7

Education, from school or college, or from

military about financial aid Parent 61.2 54.4 66.2 62.2

Dropouts are included in the parent information. 1

An example of how to read this table is that 75 percent of all students spoke to someone about financial aid, 77 2

percent of low income students spoke to someone about financial aid, 78 percent of middle income students spoke to

someone about financial aid, and 67 percent of high income students spoke to someone about financial aid.

Next we examine use of these resources by test score. Table 18 shows that among those

planning to attend PSE in the 12th grade, students in the top test score group and parents with

children in the top test score group are most likely to take advantage of these resources. While

79 percent of students in the top test score group spoke to someone about financial aid, 70

percent of students in the bottom test score group spoke to someone. While 73 percent of

parents in the top test score group read information about financial aid, 47 percent of parents in

the bottom test score group read information.
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SECTION VI. THE ROLE OF FINANCIAL AID 52

Table 18

KNOWLEDGE ABOUT FINANCIAL AID BY TEST SCORE1

Full sample

Test Score

Bottom Middle Top

Talked to teacher, counselor, school Student 74.8 69.9 73.3 79.3

representative, loan officer, or knowledgeable

adult about financial aid

2

Parent 61.6 49.2 60.4 72.2

Read information from U.S. Department of Student 56.5 50.6 53.6 62.8

Education, from school or college, or from

military about financial aid Parent 61.2 47.2 60.0 73.0

Dropouts are included in the parent information. 1

An example of how to read this table is that 75 percent of all students spoke to someone about financial aid, 70 2

percent of low test score students spoke to someone about financial aid, 73 percent of middle test score students spoke

to someone about financial aid, and 79 percent of high test score students spoke to someone about financial aid.

Next we examine the relationship between use of these resources and applications for

financial aid. Individuals who learn more about financial aid are expected to be more likely to

apply for financial aid. Table 19 shows that, in some cases, the use of these resources has a

strong relationship to knowledge about financial aid. Parents who planned on their child

attending college in the 12th grade and who read information about financial aid are more likely to

say that their child did not apply because too much paperwork was required. Parents who read

information are less likely to say that they did not apply for financial aid because they had not

been able to get much information. While 24 percent of parents who do not read information give

this as a reason why their child did not apply for financial aid, only 15 percent who do read

information give this reason. Parents who read information or speak to someone about financial

aid are also less likely to say their child did not apply because they did not know how. While 26

percent of parents who did not read information say they did not apply because they did not know

how, only 13 percent of parents who did read information give this reason. All of these results

may be because the available material was useful, or because the people who read the materials

are more likely to understand and participate in the financial aid application process.
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SECTION VI. THE ROLE OF FINANCIAL AID 53

Table 19

KNOWLEDGE ABOUT FINANCIAL AID AND FINANCIAL AID APPLICATIONS1

% of Parents who say that their teenager did not apply for financial aid because

Teenager is not Too much Have not been able No money is Do not know how

eligible because paperwork is to get much available for to apply

he/she will only required to apply information on how financial aid

attend part-time or where to apply

Talked to teacher, Student yes 7.4 10.9 21.2 10.6 20.3

counselor, school

representative, loan

officer, or knowledgeable

adult about financial aid 

2

no 10.7 12.2 16.7 9.0 19.5

Parent yes 10.0 11.3 16.6 10.6 13.7

no 12.2 10.5 22.0 9.6 25.4

Read information from Student yes 7.2 11.8 21.8 10.9 20.2

U.S. Department of

Education, from school or

college, or from military

about financial aid

no 10.0 11.1 17.7 9.4 19.8

Parent yes 9.8 11.8 14.6 10.6 13.3

no 12.5 10.0 23.8 9.7 25.9

Dropouts are included in the parent analysis. 1

An example of how to read this table is that 7 percent of students who spoke to someone about financial aid have parents who say their teenager did not apply for 2

financial aid because the teenager is not eligible for financial aid because he/she is only going part-time and 11 percent of students who did not speak to someone

about financial aid had parents who said their teenager did not apply for financial aid because the teenager was not eligible because he/she was only going parttime. Ten percent of parents who spoke to someone about financial aid say their teenager did not apply for financial aid because the teenager is not eligible for

financial aid because he/she is only going part-time and 12 percent of parents who did not speak to someone about financial aid said that their teenager did not

apply for financial aid because the teenager was not eligible because he/she was only going part-time.
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SECTION VI. THE ROLE OF FINANCIAL AID 54

The relationship between the use of these resources and PSE attendance is shown in Table

20. Students who planned to attend college in the 12th grade and who talked or read about

financial aid, or have parents who did so, are more likely to attend PSE than those who do not. 

This is probably largely due to the fact that individuals who do so are more interested in attending

PSE. While 79 percent of students who speak to someone about financial aid attend PSE, only 60

percent of students who do not speak to someone about financial aid attend PSE. While 80

percent of students whose parents speak to someone about financial aid attend PSE, only 54

percent of students whose parents do not speak to someone about financial aid attend PSE.

Table 20

KNOWLEDGE ABOUT FINANCIAL AID

AND THE DECISION TO ATTEND POSTSECONDARY EDUCATION1

Percent Attending PSE

Talked to teacher, counselor, school Student yes 78.6

representative, loan officer, or

knowledgeable adult about financial

aid 

2

no 59.7

Parent yes 80.4

no 54.3

Read information from U.S. Student yes 79.4

Department of Education, from

school or college, or from military

about financial aid

no 66.7

Parent yes 79.9

no 55.6

Dropouts are included in the parent analysis. 1

An example of how to read this table is that 79 percent of students who spoke to someone about financial aid 2

attended PSE and 60 percent of students who did not speak to someone about financial aid attended PSE.

Table 21 examines this relationship for low income, high test score students. The

difference among these students is even larger, probably because these students are more likely to

need financial aid. While 84 percent of these low income, high test score students who planned to

attend college in the 12th grade and who spoke to someone about financial aid attend PSE, only

53 percent of these students who did not speak to someone about financial aid attend PSE. While

88 percent of low income, high test score students whose parents spoke to someone about
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SECTION VI. THE ROLE OF FINANCIAL AID 55

financial aid attend PSE, only 61 percent of these students whose parents did not speak to

someone about financial aid attend PSE.

Table 21

KNOWLEDGE ABOUT FINANCIAL AID

AND THE DECISION TO ATTEND POSTSECONDARY EDUCATION:

BY LOW INCOME, HIGH TEST SCORE RESPONDENTS1

% Attending PSE

Talked to teacher, counselor, school Student yes 84.0

representative, loan officer, or

knowledgeable adult about financial

aid 

2

no 52.9

Parent yes 88.0

no 60.7

Read information from U.S. Student yes 84.3

Department of Education, from

school or college, or from military

about financial aid

no 67.8

Parent yes 86.4

no 64.7

Dropouts are included in the parent analysis. 1

An example of how to read this table is that 84 percent of low income, high test score students who spoke to some- 2

one about financial aid attended PSE and 53 percent who did not speak to someone about financial aid attended PSE.

C. WHY DO SOME STUDENTS FAIL TO APPLY FOR FINANCIAL AID?

While we may expect some students in the top income group not to apply for financial aid,

we also find that many low income students do not apply for financial aid. We next examine

reasons why students who plan to continue their education do not apply for financial aid, as

reported by parents when students are in the 12th grade. Table 22 shows that the reason those in

the top income group are most likely to give for not applying for financial aid is that they did not

need it. The reason individuals in the bottom income, low and middle test score groups are most

likely to give is that the teenager’s grades were not high enough to qualify for a loan or scholarship. The reason those in the bottom income, top test score group are most likely to give is that
MATHTECH, INC.

SECTION VI. THE ROLE OF FINANCIAL AID 56

Table 22

WHY STUDENTS HAVE NOT APPLIED FOR FINANCIAL AID, AS REPORTED BY PARENTS:

BY INCOME AND TEST SCORE1

Bottom Family Income Middle Family Income Top Family Income

Bottom Middle Top test Bottom Middle test Top test Bottom Middle Top test

test score test score score test score score score test score test score score

Family and teenager can pay without 11.5 15.2 21.8 29.6 38.8 41.6 65.9 64.1 80.8

assistance

Teenager’s grades are not high 28.3 31.5 18.7 38.8 32.0 18.9 33.7 39.1 17.5

enough to qualify for a loan or

scholarship

Neither we nor our teenager wishes 14.3 12.2 18.1 12.6 9.4 9.7 14.9 14.0 10.4

to report our financial information

Our teenager is not eligible because 17.9 13.7 8.4 14.7 9.1 7.2 14.7 11.0 2.6

he/she will only attend part-time

Too much paperwork is required to 9.4 7.9 11.5 9.2 11.0 14.1 12.4 9.8 13.3

apply for financial aid

Have not been able to get much 25.7 22.7 24.0 19.7 21.7 19.7 16.6 13.4 10.8

information on how or where to

apply for financial aid

No money is available for financial 15.2 12.2 9.0 6.8 9.3 8.0 7.9 8.5 9.8

aid

Other relatives will help pay for my 5.6 9.8 10.6 5.8 6.4 9.3 5.6 9.5 6.0

teen’s college expenses

We missed the deadline for 9.5 16.1 15.5 10.2 10.9 14.9 6.2 7.3 5.1

application

I do not know how to apply 24.6 29.0 25.3 19.5 23.6 17.9 19.9 14.9 8.7

 Dropouts are included in this analysis. 1
MATHTECH, INC.

Twelve percent of low income students are not awarded financial aid at private 4-year institutions, and 20 20

percent of low income students are not awarded financial aid at public 4-year institutions.

SECTION VI. THE ROLE OF FINANCIAL AID 57

they did not know how to apply. Of low income, high test score parents, 25 percent say that they

did not apply because they did not know how, and 24 percent say that they did not apply because

they had not been able to get much information on how to apply for financial aid. This compares

to 18 percent of the middle income, high test score parents and 9 percent of the high income, high

test score parents who say that they did not know how to apply, 20 percent of the middle income,

high test score parents, and 11 percent of the high income, high test score parents who said that

they had not been able to get enough information.

D. IS FINANCIAL AID AVAILABILITY A CRITICAL FACTOR FOR

DETERMINING PSE ATTENDANCE?

D1. Use of Data Available in NELS

Next we explore the effect of financial aid availability on PSE attendance. Because of data

limitations, we first explore the effect of being awarded financial aid for only those respondents

who apply to PSE, are accepted, and apply for financial aid at private 4-year or public 4-year

institutions. Twenty-five percent of those who apply to private 4-year institutions, are accepted,

and apply for financial aid are not awarded financial aid, and 35 percent of those who apply to

public 4-year institutions, are accepted, and apply for financial aid are not awarded financial aid.20

If students who are not awarded financial aid are less likely to attend PSE, this may provide some

indication of the effect of financial aid on PSE attendance.

There are many problems with this type of analysis, however. First, this analysis does not

begin to explore the effect of finances and student aid on the initial decision to apply to college. 

This is a potential problem because individuals who do not believe they can afford PSE may not

even apply. This analysis only addresses the small group of students who apply to PSE, are

accepted, and apply for financial aid, but do not attend any PSE or do not attend the type of PSE

where they were not offered financial aid. In addition, it is not clear why these students,

especially the low income students, do not receive financial aid. One possible explanation is that 
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SECTION VI. THE ROLE OF FINANCIAL AID 58

the students did not pursue the financial aid application process to completion. In that case,

students who did not attend PSE would be those who did not receive financial aid, because of

lack of interest and incomplete applications, rather than because they were denied financial aid. 

Another potential problem with this method of analysis is that many colleges award some financial

aid based on ability as well as on need. Therefore, those students who are awarded more financial

aid may be those of higher ability who are more likely to go to college anyway. However, since

we can control for ability with test scores in the multivariate model, this may not be a significant

problem. Also, schools may use ability more to decide how much aid to give a student, relative to

his or her need, rather than whether or not to give aid at all. If that is the case, then we would

expect the bias caused by this problem to be less significant, because we are only modeling the

effect of whether or not any financial aid was awarded on PSE attendance, rather than the effect

of different amounts of financial aid on PSE attendance.

We begin with a univariate analysis of financial aid awards and PSE attendance. Table

23A examines the relationship between being offered aid at private 4-year institutions and

attending PSE for students who apply to private 4-year institutions, are accepted, and apply for

financial aid at these types of schools. We find that students who are offered financial aid at

private 4-year institutions are more likely to attend private 4-year institutions than are respondents

who apply, are accepted, and apply for aid, but are not offered aid at private 4-year institutions. 

While 72 percent of those who are offered aid at private 4-year institutions attend private 4-year

institutions, 61 percent of those who are not offered aid at private 4-year institutions attend this

type of PSE. Respondents who are not offered aid at private 4-year institutions are more likely to

attend public 4-year institutions than those who are offered aid at private 4-year institutions. 

While 15 percent of those who are offered aid at private 4-year institutions attend public 4-year

institutions, 20 percent of those who are not offered aid at private 4-year institutions attend public

4-year institutions. However, we find that being offered financial aid at a private 4-year

institution does not appear to be related to the decision of whether to attend any type of PSE. 

While 3 percent of those who are offered aid at a private 4-year institution do not attend PSE, 5

percent of those who are not offered aid at a private 4-year institution do not attend PSE.
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SECTION VI. THE ROLE OF FINANCIAL AID 59

Table 23A

PERCENTAGE ATTENDING PSE

BY WHETHER OFFERED AID AT A PRIVATE 4-YEAR INSTITUTION

FOR THOSE WHO APPLY, ARE ACCEPTED, AND APPLY FOR AID

AT A PRIVATE 4-YEAR INSTITUTION1

Percent Attending PSE

Offered Financial Aid at Private 4-Year Not Offered Financial Aid at Private 4-Year

All All

Income Group Income Group

Bottom Middle Top Bottom Middle Top

No PSE 3.3 3.3 3.9 2.5 5.4 * 8.2 2.8

Public 4-year 14.5 11.5 17.3 12.7 20.2 * 23.1 17.7

Private 4-year 71.6 72.1 67.4 77.4 60.9 * 55.4 70.1

Less than 4-year public 10.3 12.8 11.4 6.6 12.0 * 12.0 9.4

Less than 4-year private 0.3 0.3 0.0 0.9 1.5 * 1.4 0.0

* Denotes too few observations.

Some dropouts are included in this analysis. 1

Table 23B explores the same relationships for students who apply, are accepted, and apply

for financial aid at public 4-year institutions. We find similar differences between those offered

aid and those not offered aid as in private institutions. While 77 percent of those who are offered

aid at public 4-year institutions attend public 4-year institutions, 68 percent of those who are not

offered financial aid at public 4-year institutions attend public 4-year institutions. There are

interesting differences by income in the types of schools attended by students who do not receive

aid at public 4-year institutions. While low income respondents who are not offered financial aid

at public 4-year institutions are more likely not to attend any type of PSE, high income

respondents who are not offered aid at public 4-year institutions are more likely to attend less than

4-year public institutions. While 4 percent of bottom income students who are offered financial

aid at 4-year public institutions do not attend PSE, 13 percent of bottom income students who are

not offered financial aid at 4-year public institutions do not attend PSE. While 14 percent of top

income students who are not offered financial aid at public 4-year institutions attend less than 4-

year public institutions, 22 percent of top income students who are not offered financial aid at 4-

year public institutions attend less than 4-year public institutions.
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SECTION VI. THE ROLE OF FINANCIAL AID 60

Table 23B

PERCENTAGE ATTENDING PSE

BY WHETHER OFFERED AID AT A PUBLIC 4-YEAR INSTITUTION

FOR THOSE WHO APPLY, ARE ACCEPTED, AND APPLY FOR AID

AT A PUBLIC 4-YEAR INSTITUTION1

Percent Attending PSE

Offered Financial Aid at Public 4-Year Not Offered Financial Aid at Public 4-Year

All All

Income Group Income Group

Bottom Middle Top Bottom Middle Top

No PSE 3.5 4.2 3.2 1.6 6.5 13.1 5.7 4.6

Public 4-year 76.5 72.7 78.4 81.2 67.5 62.1 68.8 67.0

Private 4-year 3.3 2.5 4.3 2.3 3.6 0.6 3.2 6.0

Less than 4-year public 15.9 19.2 13.5 14.3 21.3 22.2 20.9 22.3

Less than 4-year private 0.9 1.4 0.7 0.6 1.1 2.0 1.5 0.2

 Some dropouts are included in this analysis. 1

We next incorporate a modeling framework to examine the effect of financial aid on PSE

attendance. In this model, we control for family income and ability (using test scores). We also

control for all of the other factors examined in our earlier analysis of the determinants of PSE

attendance. The independent variable of interest is an indicator of whether the student was

offered financial aid at a public or private 4-year institution. Table 24A shows that respondents

who are offered financial aid at a private 4-year institution are more likely to attend a private 4-

year institution than those who apply, are accepted, and apply for aid but are not offered aid at a

private 4-year institution. As a whole, those students who are offered financial aid at a private 4-

year institution are 80 percent more likely to attend a private 4-year institution. Table 24B

examines the same relationships at public 4-year institutions. We find similar results for this type

of institution. Respondents who are offered financial aid at a public 4-year institution are more

likely to attend a public 4-year institution than those who apply, are accepted, and apply for aid

but are not offered aid at a public 4-year institution. As a whole, students who are offered

financial aid at a public 4-year institution are 80 percent more likely to attend a public 4-year

institution. Middle income students are 125 percent more likely to attend a public 4-year

institution if they are offered financial aid at a public 4-year institution.
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SECTION VI. THE ROLE OF FINANCIAL AID 61

Table 24A

EFFECT OF BEING OFFERED FINANCIAL AID AT A PRIVATE 4-YEAR INSTITUTION

ON ATTENDANCE AT A PRIVATE 4-YEAR INSTITUTION

FOR THOSE WHO APPLY, ARE ACCEPTED, AND APPLY FOR AID

AT A PRIVATE 4-YEAR INSTITUTION1

Variable (T-statistic) 2

Odds Ratio3

Full Sample

Family Income

Bottom Middle Top

Offered financial aid at a private 4-year 1.78* 3.83 2.08 1.38

institution (2.31) (1.72) (1.73) (0.78)

# #

Dropouts are not included. 1

Other control variables in this model are the same as the control variables in Table 13. 2

Of the full sample of respondents included in our multivariate model of PSE attendance, 7 percent are included here. 3

* Designates significance at the .05 level.

Designates significance at the .10 level. #

Table 24B

EFFECT OF BEING OFFERED FINANCIAL AID AT A PUBLIC 4-YEAR INSTITUTION

ON ATTENDANCE AT A PUBLIC 4-YEAR INSTITUTION

FOR THOSE WHO APPLY, ARE ACCEPTED, AND APPLY FOR AID

AT A PUBLIC 4-YEAR INSTITUTION1

Variable (T-statistic) 2

Odds Ratio3

Full Sample

Family Income

Bottom Middle Top

Offered financial aid at a public 4-year 1.80** 1.31 2.25** 2.04

institution (3.11) (0.57) (3.35) (1.58)

Dropouts are not included. 1

Other control variables in this model are the same as the control variables in Table 13. 2

Of the full sample of respondents included in our multivariate model of PSE attendance, 14 percent are included 3

here.

** Designates significance at the .01 level.
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SECTION VI. THE ROLE OF FINANCIAL AID 62

D2. Use of NPSAS Data to Predict Financial Aid

Next we use predictions of financial aid from the 1993 NPSAS database to estimate the

effect of varying levels of financial aid on PSE attendance. This is necessary because the NELS

database contains information only on the total amount of financial aid received by those students

who actually attend PSE and whether or not certain types of financial aid were received. Thus,

NELS does not contain the amount of financial aid received by type of award, nor does NELS

contain the expected financial aid for those not attending PSE. Furthermore, using these

imputations we can analyze the effect that expected financial aid may have on PSE attendance for

all students. This is important because students’ expectations for educational attainment may be

affected early on by whether they expect to be eligible for financial aid. These expectations may

affect behavior much before the student is ready to attend PSE.

Unlike the analysis in D1 above, here we examine the effect of financial aid on PSE

attendance for all students, and we examine financial aid amounts rather than only whether

financial aid was awarded. This analysis also addresses the larger problem of the full group of

students who do not attend PSE, rather than just the 11 percent of students who apply, are

accepted, and do not receive financial aid.

Two different matching techniques were employed to predict financial aid for respondents

in the NELS sample. The first was regression analysis to predict financial aid, and the second was

a statistical matching procedure where respondents from NELS were matched with respondents

from NPSAS based on a number of characteristics.

a. Prediction of Financial Aid through Regression Analysis

The first method used to predict financial aid involves estimation of ordinary least squares

models using the NPSAS data. The resulting coefficients from these estimates were used to

calculate predicted financial aid for NELS respondents. Variables available in both datasets which

were used in the prediction were: gender, race, marital status, whether the students’ parents’

highest level of education was a bachelor’s degree or higher, state of residence, income level,
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SECTION VI. THE ROLE OF FINANCIAL AID 63

number of family members, whether the student expected to receive a bachelor’s degree or higher,

Catholic school attendance, and other type of private school attendance. All undergraduates

between the ages of 17 and 24 were included in the estimation. The only ability measures

included in NPSAS are SAT and ACT scores, and these scores are not available for a large

number of NELS and NPSAS respondents. Therefore, no ability measures were used in the

match.

Data from NPSAS were used to predict three variables: the total need-based aid received;

Pell grant amount received; and total federal grants received. These variables were chosen

because they were thought to be least likely to be correlated with ability. Total grant aid was not

predicted because it is correlated with ability. If financial aid measures that were correlated with

ability were employed, effects on financial aid may have been upwardly biased. Consequently,

these financial aid variables may have measured the effect of ability on PSE attendance, as well as

the effect of receipt of financial aid on PSE attendance.

Results from the first stage regression were used in a logit model to determine the effect

of financial aid on PSE attendance. In the many different specifications run, financial aid was not

found to have a significant effect on PSE attendance. These specifications included:

C Effect of the different types of financial aid on PSE attendance for the entire

sample.

C Effect of the different types of financial aid on PSE attendance, separately for each

of the three income groups.

C Effect of the different types of financial aid on attendance at 4-year public schools.

C Effect of the different types of financial aid on attendance at 4-year private

schools.

There are several possible explanations for the lack of significant effects. The first, of course, is

that financial aid received does not really have an effect on the decision to attend PSE or to attend

a private school rather than a public school or a 4-year institution rather than a 2-year institution. 

However, another plausible explanation is that the predicted financial aid amounts are not very

good predictions of financial aid received. These predictions may be the best that can be made,
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SECTION VI. THE ROLE OF FINANCIAL AID 64

given the available data. Evidence of the inadequacy of the predictions is the r-squared scores

from the first stage regressions. The r-squared tells us how well the financial aid has been

predicted on a scale from 0 to 1. These values range from 0.05 to 0.48, which means that over

half of the variation in financial aid was not explained by the included independent variables. 

Additionally, a reason for a lack of significant results may be the entitlement nature of the financial

aid programs — students with similar financial characteristics receive similar amounts of financial

aid. Therefore, it may not be possible to find a control group that is similar except for the amount

of financial aid received. These results may also be pointing out the limitations of combining two

very different data sets. 

b. Prediction of Financial Aid through Statistical Matching

Westat employed a statistical matching procedure to estimate different types of financial

aid received. This procedure involved matching NELS respondents with NPSAS respondents

with similar characteristics. All first-year full-time undergraduate students in the NPSAS sample

were included in the matching procedure. The sample was divided into dependent and

independent students. The NPSAS dataset divided the sample into these two groups, and in

NELS, individuals were considered independent if they were married or had children. Dependent

students were matched by age, region of family residence, family income, family size, and parents’

marital status. Independent students were matched only by age and region of residence. 

Information on aid receipt was predicted separately for students attending public 4-year colleges,

private 4-year colleges, public less than 4-year colleges, and private less than 4-year colleges. 

Each student in the NELS panel was separately matched to an NPSAS student attending each of

the four types of institutions.

The predicted financial aid variables were then used in logit models to determine the effect

of financial aid on PSE attendance. The predicted financial aid variables included Pell grants, total

institutional grants, total state grants, total federal grants, total financial aid, and total loans. 

Logit models employed included:

C Effect of the different measures of financial aid on 4-year public or private PSE

attendance as compared to no PSE or other types of PSE attendance.
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C Effect of the different measures of financial aid on 4-year private PSE attendance

as compared to 4-year public PSE attendance.

C Effect of the different measures of financial aid on 4-year PSE attendance as

compared to 2-year PSE attendance.

C Effect of the different measures of financial aid on 2-year PSE attendance as

compared to no PSE attendance.

Results were estimated for the sample as a whole and for the three different income groups. In

virtually all of the models employed, financial aid was not found to have a significant effect on

PSE attendance. Again, either financial aid has no effect on PSE decisions, or the model’s

limitations, the entitlement nature of the financial aid programs, and the combining of two very

different data sets, are preventing accurate predictions of financial aid received.

E. A SUMMING UP AND SYNTHESIS OF THE FINDINGS FROM THIS SECTION

In this section we have found some evidence for the importance of financial aid

knowledge, information, and receipt on PSE attendance. The NELS data showed that nearly a

quarter of the parents reported that they had not been able to get enough information about

financial aid when their children were in the eighth grade, and that the percentage of the parents

who had not been able to get enough information declined as income increased. While complete

financial aid information is not necessary in the eighth grade, it may be important for parents to

realize that financial aid is available at this point so they believe they can afford to send their child

to PSE. In fact, there does appear to be some inverse relationship between negative attitudes by

parents toward college expenses and financial aid in the eighth grade and PSE attendance.

When deciding among institutions, both students and their parents view financial aid as

more important than college expenses. Low income group individuals are more likely to view

these factors as important in the choice of a college. Parents who have children in the higher test

score groups are less likely to view college expenses and financial aid as very important in

choosing a college.
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SECTION VI. THE ROLE OF FINANCIAL AID 66

Students in the lower and middle income groups and the higher test score groups are more

likely to attempt to obtain information about financial aid. The relationship between use of these

resources and knowledge about financial aid appears to be strong, and the relationship between

use of these resources and PSE attendance, even stronger. Those who do not use these resources

are less likely to attend PSE. This may be because students and parents who are more interested

in PSE are more likely to make the effort to obtain information about financial aid.

The most common reason parents give that low income students do not apply for financial

aid are because their grades are not high enough, they did not know how to apply, and they were

not able to obtain enough information. This suggests that more education about financial aid

should be provided in the schools to address these problems.

After controlling for income, test socre, and other personal characteristics, we found that

among students applying to PSE, those who are offered financial aid at public and private 4-year

institutions are more likely to attend these types of institutions than those who are not offered

financial aid. However, this analysis does not address the problem of individuals who do not

apply to PSE or who do not apply for financial aid. Individuals who do not believe they can

afford PSE may not apply, and individuals who do not believe financial aid is available may not

apply for financial aid. To examine the effect of the amount of financial aid received on PSE

attendance for the entire sample, we predicted financial aid with the NPSAS data set using two

different statistical methods. Predicted financial aid was not found to have a significant effect on

PSE attendance.
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APPENDIX 67

APPENDIX

VARIABLE DEFINITIONS

College Preparatory Courses: Used in the logit model, this is a count of the number of the

following courses that the student took: pre-calculus, calculus, biology, chemistry, physics, and

foreign language. (Uses NELS variables F2RPRE_C, F2RCAL_C, F2RBIO_C, F2RCHE_C,

F2RPHY_C, F2R16_C.)

College Preparatory Program: This variable is used in the logit model. Students are asked in

the second follow-up survey to describe their current high school program. If the student

describes the program as “college prep,” then this variable is equal to one. If the student

describes a different type of high school program, this variable is equal to zero. (Uses NELS

variables BYS49, F1S20, F2S12A.)

High School Program: This variable is used in table 7. The high school program is defined in

the following categories rigorous academic, academic, vocational, academic/vocational, or none

of the above. A rigorous academic high school program is defined as at least 4 units of English,

at least 3 units of social studies, at least 3 units of science, at least 3 units of math, and at least .5

units of computer science. An academic high school program is defined as a total of 12 units in

english, social studies, science, and math. A vocational track is defined as at least 3 units in one

of several vocation subjects. An academic/vocational track is defined as meeting the requirements

for both the academic and the vocational programs. (Uses NELS variable F2RTRPR6.)

Income Group: Family income level is defined using total family income, as provided by the

parents in the base-year and second follow-up questionnaires. We divided the family income

levels in the base and second follow-up years into bottom, middle, and top groups with

approximately one-third of the students in each category. Because the income was provided in

levels, rather than exact amounts, the groups could not be divided into exact thirds. In the base

year, the weighted percents in the three groups were 38 percent in the bottom, 39 percents in the

middle, and 23 percent in the top. In the second follow-up, the weighted percents in the three

groups were 34 percent in the base group, 34 percent in the middle group, and 32 percent in the

top group. Because the income data is missing for many respondents, we use the base year

income group when available, and when the base year income group is not available, we use the

second follow-up income group. (Uses NELS variables BYP8O, F2P74.)

PSE Attendance: Postsecondary attendance is defined using the variable which documents the

type of the valid postsecondary institution with the latest initial enrollment date. Individuals who

are coded as a legitimate skip are defined as not attending PSE. Private schools less than 4 years

are defined to include private for profit schools. (Uses NELS variable PSELASTY.)

Test Score Group: Multiple choice tests were administered to NELS respondents in reading

comprehension, mathematics, science, and history/citizenship/geography. While all students

received the same set of tests in the base year, multiple forms of the math and reading tests were

administered in the follow-up years. These tests were targeted to the students’ ability levels. The

test score used in our analyses is the composite reading/math test score. We divided the base year
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APPENDIX 68

test scores into the bottom, middle, and top groups, with one-third of the students in each

category. If the base-year test score was not available, then the students were placed according to

the first follow-up test, and if both the base-year test and the first follow-up test were missing,

then the students were placed according to their ranking in the second follow-up test. (Uses

NELS variables BY2XCOMP, F12XCOMP, F22XCOMP.)
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BIBLIOGRAPHY 69

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