Association for Public Policy Analysis & Management

The growth of behavioral economics and “nudges” to improve student outcomes have led to key insights into reducing barriers in postsecondary education. Research suggests that the lack of information and the complexity of the financial aid process can keep students from making optimal decisions to benefit their postsecondary education career (Bettinger, Long, Oreopoulos, & Sanbonmatsu, 2012; Dynarski & Scott-Clayton, 2008). Yet, it is still not clear what format, frequency, or type of information should be supplied, and whether information must be coupled with other types of supports to meaningfully influence decision-making processes.

This study contributes to the field by testing the impact of information and framing of messaging on task completion (i.e., submitting the Free Application for Federal Student Aid, or FAFSA) as well as decisions regarding a choice that involves a longer commitment (i.e. the number of credits taken in a semester or year). Unlike most prior research on nudge interventions in postsecondary education, which focuses on students in high school or recent high school graduates, this study targets students already in college, who have already demonstrated their motivation to attend college but may still face challenges in navigating the financial aid process. Additionally, we explore whether the framing of the information, whether positive, negative, or neutral, matters for influencing student behavior.

In a randomized controlled trial, we randomly select first, second, and third-year college students participating in the National Postsecondary Student Aid Study (NPSAS) interviews to receive personalized communications in spring semester of the academic year with information about the importance of the FAFSA, guidance on how to complete the FAFSA, and suggestions for ways to get help completing the form. Participants receiving the letter are also randomly assigned to one of three framing types (positive, negative, or neutral). The goal of the experiment is twofold: first, we investigate whether providing clear information about financial aid eligibility, simplified instructions for completing the financial aid form, and suggestions about other resources available to student affect FAFSA submissions, college enrollment, and financial aid receipt. Second, we examine whether the framing of the information, whether positive, negative, or neutral, affect whether students respond to the intervention and the magnitude of that response.

Preliminary analysis suggests a five percentage point increase in FAFSA submission rates among the treatment group overall, with the treatment effect being larger among students who received communications with a neutral or positive framing compared to those who received communications with a negative framing. There is no meaningful treatment effect on college persistence in the years following the treatment, and further analyses of treatment effects on credit units taken is pending. Spikes in FAFSA submission are observed on days when treatment was administered via email, and/or on days following treatment via mail, suggesting participants’ engagement with the personalized information provided to them. Results from the study should provide guidance on how to best support students who face obstacles navigating the financial aid system whilst continuing with their postsecondary education.