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In the News: A Nudge for the Neediest

An Inside the Higher Ed study of impact of need-based financial aid finds that extra grants helped the students least likely to succeed, but did little to boost overall academic progress.

Two students, both eligible for Pell Grants for the needy, are randomly chosen to receive extra need-based aid as they start as first-time, full-time freshmen. One is considered very likely to complete a four-year degree; the other, an at-risk student, is a likely dropout. Whom does the grant help more?

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