Growing Outcomes in the Garden State: Examining Community College Merit Aid, Enrollment, Completion, and Transfer

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Bibliographic Details
Title: Growing Outcomes in the Garden State: Examining Community College Merit Aid, Enrollment, Completion, and Transfer
Language: English
Authors: Xiaodan Hu (ORCID 0000-0002-8648-0601), Frank Fernandez (ORCID 0000-0003-4072-3994), Matthew J. Capaldi (ORCID 0000-0002-5664-3414)
Source: Community College Review. 2026 54(3):302-338.
Availability: SAGE Publications. 2455 Teller Road, Thousand Oaks, CA 91320. Tel: 800-818-7243; Tel: 805-499-9774; Fax: 800-583-2665; e-mail: journals@sagepub.com; Web site: https://sagepub.com
Peer Reviewed: Y
Page Count: 37
Publication Date: 2026
Document Type: Journal Articles
Reports - Research
Education Level: Higher Education
Postsecondary Education
Two Year Colleges
Descriptors: State Aid, Merit Scholarships, Community College Students, Student Financial Aid, State Programs, College Enrollment, Educational Attainment, College Transfer Students, Associate Degrees, Equal Education, Program Effectiveness, Public Colleges, Student Characteristics, Inclusion
Geographic Terms: New Jersey
DOI: 10.1177/00915521261428114
ISSN: 0091-5521
1940-2325
Abstract: Objective: This study examines whether New Jersey's state-funded merit-aid program, which was designed to benefit community college students, including first-time full-time student enrollment, associate degree completion, and transferring out. We compared STARS to programs in other states by applying a typology that categorizes state-funded merit-aid programs by whether they are designed to be inclusive of community college students. Methods: Using institution-level data between 2001 and 2021, we used propensity score matching to select comparable community colleges to be included in the untreated group, as well as difference-in-differences and event study approaches to test our hypotheses about the relationship between STARS program adoption and community college outcomes. Results: We found that New Jersey's STARS programs increased White students' enrollment and associate degree completion in community colleges relative to community colleges in states with merit-aid programs that disproportionately favor 4-year students. However, we did not find the same relationship for non-White students. It was unlikely that the enrollment increase was the result of community colleges siphoning off enrollments from other higher education sectors. Additionally, we did not find any evidence that STARS reduced students transferring out before completing credentials. Conclusions/Contributions: By examining a unique merit-aid program focused on community college students, we discuss implications to adopt and design more equitable financial aid policies to support community college enrollment, completion, and transfer. Our results help advance current scholarship by considering tensions among access, social mobility, and merit, while studying whether merit-aid programs can serve as an equitable mechanism for improving community college outcomes.
Abstractor: As Provided
Entry Date: 2026
Accession Number: EJ1507675
Database: ERIC
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Description
Abstract:Objective: This study examines whether New Jersey's state-funded merit-aid program, which was designed to benefit community college students, including first-time full-time student enrollment, associate degree completion, and transferring out. We compared STARS to programs in other states by applying a typology that categorizes state-funded merit-aid programs by whether they are designed to be inclusive of community college students. Methods: Using institution-level data between 2001 and 2021, we used propensity score matching to select comparable community colleges to be included in the untreated group, as well as difference-in-differences and event study approaches to test our hypotheses about the relationship between STARS program adoption and community college outcomes. Results: We found that New Jersey's STARS programs increased White students' enrollment and associate degree completion in community colleges relative to community colleges in states with merit-aid programs that disproportionately favor 4-year students. However, we did not find the same relationship for non-White students. It was unlikely that the enrollment increase was the result of community colleges siphoning off enrollments from other higher education sectors. Additionally, we did not find any evidence that STARS reduced students transferring out before completing credentials. Conclusions/Contributions: By examining a unique merit-aid program focused on community college students, we discuss implications to adopt and design more equitable financial aid policies to support community college enrollment, completion, and transfer. Our results help advance current scholarship by considering tensions among access, social mobility, and merit, while studying whether merit-aid programs can serve as an equitable mechanism for improving community college outcomes.
ISSN:0091-5521
1940-2325
DOI:10.1177/00915521261428114