Instead of giving low-income college students their financial assistance in a lump sum, a pilot program disburses the money every two weeks, and a new paper reports that the arrangement may promote academic success and smart financial management.
The study by the nonprofit research organization MDRC analyzes the Aid Like a Paycheck project launched by the Institute for College Access and Success in 2009 and pilot-tested at two colleges.
Initial response to the program from college staff and students has been positive, with enthusiasm generally exceeding researchers’ expectations, according to the report. Students said the new system helps them spend their money wisely, reduce their work hours, and put more energy into their schoolwork.
