Three Essays on the Economics of Financial Aid

The Toward EXcellence, Access, and Success (TEXAS) grant is the largest source of financial aid for higher education in Texas, created in 1999. In fiscal year 2017, it provided 72% of the total grants awarded by the state and granted funds to 58% of first-time freshmen who received any form of financial aid. Since its launch date, the TEXAS Grant program has been adjusted to better look after the best interest of students, institutions, and the state. Starting in fiscal year 2014, the state passed Senate Bill (SB) 28 establishing that from a pool of low-income eligible students, those deemed to be high-achievers should receive priority for initial year awards. In this dissertation I utilize descriptive statistics, statistical learning, and traditional statistical approaches to explore the financial aid situation in the state of Texas, with particular emphasis on the TEXAS Grant program and the modification included in SB 28. It is my hope that the information here included is useful to make policy decisions to ensure programs’ and institutions’ goals accomplishments, and guarantee students’ best interest.