The Higher Education Reauthorization Act (HERA) of 2006 eliminated so called the “50 percent rule” that prohibited students enrolled in post-secondary institutions offering 50% or more of their courses exclusively online to receive any federal financial aid (Title IV aid). In this paper we study the net cost of attending colleges and additionally test for so-called “Bennett” hypothesis that assumes that the Title IV aid, that became available after elimination of 50% rule, might have been captured by institutions that could increase tuition and fees and lower the amount and availability of the institutional grants to students. We study the net costs, tuition and fees, and institutional aid for students who study exclusively online, students in for-profit colleges in which exclusive online education is more heavily concentrated, and students who study exclusively online at for-profit universities before and after the elimination of 50% rule. We find a partial support for Bennett hypothesis for profit, but not exclusively online students.
Bibliographical noteFunding Information:
This research was supported by a grant from the American Educational Research Association which receives funds for its “AERA Grants Program” from the National Science Foundation under NSF Grant #DRL-0941014. Opinions reflect those of the author(s) and do not necessarily reflect those of the granting agencies. Haeil Jung acknowledges that this work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2016S1A3A2924956).
This research was supported by a grant from the American Educational Research Association which receives funds for its “AERA Grants Program” from the National Science Foundation under NSF Grant #DRL-0941014 . Opinions reflect those of the author(s) and do not necessarily reflect those of the granting agencies.
We are interested in whether or not the expansion of federal financial aid in 2006 directly benefited students and/or IHEs that could capture this increase in federal assistance by either increasing tuition and fees or reducing institutional aid. There are many types of federal grant programs for students that operate under Title IV, including Pell grants, Federal Supplemental Educational Opportunity Grants (FSEOG), National SMART Grants, Academic Competitiveness Grants, Federal Stafford Loans, PLUS loans, and Federal Work-Study program, among others.
© 2020 Western Social Science Association.
- Bennett hypothesis
- For-profit colleges
- Institutional grants
- Net cost
- Online education
- Tuition and fees
ASJC Scopus subject areas
- Social Psychology
- Sociology and Political Science