Should the Federal Government Fund Short-Term Postsecondary Certificate Programs? Research Report
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| Title: | Should the Federal Government Fund Short-Term Postsecondary Certificate Programs? Research Report |
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| Language: | English |
| Authors: | Baum, Sandy, Holzer, Harry, Luetmer, Grace, Urban Institute, Center on Education Data and Policy |
| Source: | Urban Institute. 2020. |
| Availability: | Urban Institute. 2100 M Street NW, Washington, DC 20037. Tel: 202-261-5687; Fax: 202-467-5775; Web site: http://www.urban.org |
| Peer Reviewed: | N |
| Page Count: | 77 |
| Publication Date: | 2020 |
| Sponsoring Agency: | Arnold Ventures |
| Document Type: | Reports - Evaluative |
| Education Level: | Postsecondary Education Higher Education |
| Descriptors: | Federal Aid, Postsecondary Education, Certification, Student Financial Aid, Outcomes of Education, Education Work Relationship, Adults, Educational Attainment, Institutional Characteristics, Student Characteristics, Educational Finance, Paying for College, Debt (Financial), Loan Default, Student Loan Programs, Income, Grants |
| Laws, Policies and Program Identifiers: | Pell Grant Program |
| Assessment and Survey Identifiers: | National Postsecondary Student Aid Study (NCES), Beginning Postsecondary Students Longitudinal Study |
| Abstract: | The federal student aid system has emerged as the primary source of funding for students pursuing a wide range of subbaccalaureate credentials. But the eligibility rules for federal student aid, offered under Title IV of the Higher Education Act, require a minimum program length of 600 hours for Pell grants, despite little evidence showing that short programs meeting the current benchmark produce better labor-market outcomes than those that do not. In this report, we review the evidence on the labor market returns on certificate programs and evaluate the justification for the current restrictions on eligibility for federal student aid. We find that some programs that currently qualify for federal aid provide little or no earnings boost for students, while many others, including programs that do not qualify for federal aid, do boost earnings. There is no clear justification for the current line between programs that are Pell eligible and those that do not meet the program length requirements. Better data and more rigorous research will strengthen the evidence base for determining the best policies for improving labor market outcomes. |
| Abstractor: | As Provided |
| Entry Date: | 2021 |
| Accession Number: | ED610038 |
| Database: | ERIC |
| Abstract: | The federal student aid system has emerged as the primary source of funding for students pursuing a wide range of subbaccalaureate credentials. But the eligibility rules for federal student aid, offered under Title IV of the Higher Education Act, require a minimum program length of 600 hours for Pell grants, despite little evidence showing that short programs meeting the current benchmark produce better labor-market outcomes than those that do not. In this report, we review the evidence on the labor market returns on certificate programs and evaluate the justification for the current restrictions on eligibility for federal student aid. We find that some programs that currently qualify for federal aid provide little or no earnings boost for students, while many others, including programs that do not qualify for federal aid, do boost earnings. There is no clear justification for the current line between programs that are Pell eligible and those that do not meet the program length requirements. Better data and more rigorous research will strengthen the evidence base for determining the best policies for improving labor market outcomes. |
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