The Adoption of Loan Replacement Grants for Low- and Moderate-Income Students at American Colleges and Universities: a Comparative Case Study
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View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by D-Scholarship@Pitt THE ADOPTION OF LOAN REPLACEMENT GRANTS FOR LOW- AND MODERATE-INCOME STUDENTS AT AMERICAN COLLEGES AND UNIVERSITIES: A COMPARATIVE CASE STUDY by Adam Joseph Argaylis Lips B.A., University of Notre Dame, 1997 M.A.T., University of Portland, 1999 Submitted to the Graduate Faculty of The School of Education in partial fulfillment of the requirements for the degree of Doctor of Education University of Pittsburgh UNIVERSITY OF PITTSBURGH SCHOOL OF EDUCATION This dissertation was presented by Adam Joseph Argaylis Lips It was defended on April 2, 2009 and approved by Michael G. Gunzenhauser, Associate Professor Administrative and Policy Studies University of Pittsburgh School of Education Peter Miller, Assistant Professor Department of Foundations and Leadership Duquesne University School of Education John C. Weidman, Professor and Chair Administrative and Policy Studies University of Pittsburgh School of Education Dissertation Director: Erik C. Ness, Assistant Professor Administrative and Policy Studies University of Pittsburgh School of Education ii Copyright © by Adam J.A. Lips 2009 iii THE ADOPTION OF LOAN REPLACEMENT GRANTS FOR LOW- AND MODERATE-INCOME STUDENTS AT AMERICAN COLLEGES AND UNIVERSITIES: A COMPARATIVE CASE STUDY Adam J.A. Lips, EdD University of Pittsburgh, 2009 In recent years, a growing number of American colleges and universities have implemented financial aid policies targeted at lower-income students. These initiatives – referred to in this study as Loan Replacement Grant (LRG) programs – seek to reduce or eliminate loans as part of student financial aid awards and replace them with grants. Since the first LRG was instituted in 1998, the programs have proliferated; in the past five years over 40 institutions have adopted LRGs. This qualitative study investigates how and why LRGs are adopted at colleges and universities. Using a comparative case study design, the policy adoption process at three institutions is considered in relation to the diffusion of policy innovation theory – a widely accepted mechanism for investigating the spread of new policies across adopting units. The theoretical framework, which has been derived from policy innovation and diffusion literature, consists of eight dimensions and guides analysis of archival data and interviews with institutional policymakers. The core study finding offers support for a “unified theory” (Berry, 1994) of policy adoption, which simultaneously considers the influence of internal determinants and iv diffusion-related factors. Results suggest that in LRG adoption, an evaluation of internal determinants is most effective in describing an institution’s ability or capacity to implement programs, while diffusion-related factors provide insight regarding the likelihood that institutions will adopt. Additional findings point to a centrality of institutional finances in the policymaking process, the prominent role of policy entrepreneurs, and the influence of institutional problems stemming from underrepresentation of lower-income students. Among diffusion explanations, competition between institutions and the borrowing of policy ideas out of convenience represent the most relevant factors in LRG adoption. v TABLE OF CONTENTS ACKNOWLEDGEMENTS .................................................................................................... XVI 1.0 INTRODUCTION ........................................................................................................ 1 1.1 CONTEXT AND PROBLEM ............................................................................. 2 1.1.1 Inequity in Postsecondary Access .................................................................. 2 1.1.2 Financial Aid Initiatives Associated with Inequity ....................................... 3 1.1.3 Loan Replacement Grants as a Response to Inequity .................................. 3 1.2 THE RESEARCH QUESTIONS AND THEIR SIGNIFICANCE ................. 5 2.0 REVIEW OF THE LITERATURE ............................................................................ 7 2.1 INEQUITABLE ACCESS IN AMERICAN HIGHER EDUCATION........... 7 2.2 THE EXTENT OF INEQUITABLE ACCESS ................................................. 9 2.3 THE IMPORTANCE OF ADDRESSING INEQUITABLE ACCESS ........ 13 2.4 SOURCES OF INEQUITY IN POSTSECONDARY OPPORTUNITY ...... 15 2.4.1 Academic Preparation ................................................................................... 15 2.4.2 The Balanced Access Explanation................................................................ 16 2.4.3 Information Constraints ............................................................................... 19 2.5 FINANCIAL AID POLICY TRENDS AND INEQUITY .............................. 21 2.5.1 Rising College Cost and Institutional Pricing ............................................. 22 2.5.2 Federal Government Policies and Inequity ................................................. 23 vi 2.5.2.1 The Federal Pell Grant ....................................................................... 24 2.5.2.2 The Federal Student Loan Program ................................................. 25 2.5.2.3 Tax Credits and Savings Plans .......................................................... 25 2.5.3 State Policies and Inequity ............................................................................ 27 2.5.3.1 State Merit Aid Programs .................................................................. 27 2.5.3.2 State Prepaid Tuition Plans ............................................................... 28 2.5.4 Institutional Enrollment Management Practices and Inequity ................. 29 2.5.4.1 Tuition Discounting............................................................................. 30 2.5.4.2 Institutional Merit-Based Financial Aid ........................................... 31 2.5.5 Summary: The Outcome of Financial Aid Policy Trends.......................... 32 2.6 LOAN REPLACEMENT GRANTS: A RESPONSE TO INEQUITY ......... 33 2.6.1 An Overview of LRGs ................................................................................... 34 2.6.2 The Significance of Loan Replacement Programs ...................................... 37 3.0 CONCEPTUAL FRAMEWORK ............................................................................. 41 3.1 A REVIEW OF DIFFUSION OF POLICY INNOVATION THEORY ...... 42 3.1.1 Internal Determinants Explanations ........................................................... 43 3.1.2 Diffusion Explanations .................................................................................. 44 3.1.3 Integrated or Unified Models ....................................................................... 47 3.2 POLICY INNOVATION LITERATURE IN HIGHER EDUCATION....... 48 3.3 SITUATING THE CURRENT STUDY .......................................................... 53 4.0 RESEARCH DESIGN ............................................................................................... 56 4.1 RESEARCH STRATEGY: COMPARATIVE CASE STUDIES ................. 56 4.2 SAMPLE SELECTION .................................................................................... 57 vii 4.3 DATA COLLECTION ...................................................................................... 60 4.4 DATA ANALYSIS ............................................................................................. 62 4.4.1 Within-Case Analysis .................................................................................... 63 4.4.2 Between-Case Analysis .................................................................................. 63 4.4.3 Analytical Framework .................................................................................. 64 4.4.3.1 Internal Determinant Explanations .................................................. 64 4.4.3.2 Diffusion Explanations ....................................................................... 66 4.5 STUDY VALIDITY AND RELIABILITY ..................................................... 68 4.6 LIMITATIONS .................................................................................................. 70 5.0 THE UNIVERSITY OF VIRGINIA AND ACCESS UVA ..................................... 71 5.1 UNIVERSITY OF VIRGINIA OVERVIEW .................................................. 72 5.1.1 Institutional Profile........................................................................................ 72 5.1.2 Organizational Structure .............................................................................. 73 5.1.3 Financing a University of Virginia Education ............................................ 75 5.2 ANTECEDENTS TO ACCESS UVA ............................................................... 76 5.2.1 Financial Aid Policy Context ........................................................................ 76 5.2.1.1 The Spread of LRGs ........................................................................... 76 5.2.1.2 State Higher Education Financing .................................................... 77 5.2.1.3 State Government Scrutiny ................................................................ 78 5.2.1.4 The University of Virginia’s Position ................................................ 79 5.2.2 University of Virginia Institutional Context ............................................... 79 5.2.2.1 Stable and Respected Institutional Leadership ................................ 80 5.2.2.2