|Benefit-Cost Summary Statistics Per Participant|
|Taxpayers||($38)||Benefits minus costs||($278)|
|Participants||($96)||Benefit to cost ratio||($2.86)|
|Others||($42)||Chance the program will produce|
|Indirect||($29)||benefits greater than the costs||45 %|
|Net program cost||($72)|
|Benefits minus cost||($278)|
|Detailed Monetary Benefit Estimates Per Participant|
|Benefits from changes to:1||Benefits to:|
|Labor market earnings associated with higher education||($50)||($111)||($47)||$0||($208)|
|Costs of higher education||$12||$14||$5||$6||$38|
|Adjustment for deadweight cost of program||$0||$0||$0||($36)||($36)|
|Detailed Annual Cost Estimates Per Participant|
|Annual cost||Year dollars||Summary|
|Program costs||$65||2009||Present value of net program costs (in 2016 dollars)||($72)|
|Comparison costs||$0||2009||Cost range (+ or -)||50 %|
|Estimated Cumulative Net Benefits Over Time (Non-Discounted Dollars)|
|The graph above illustrates the estimated cumulative net benefits per-participant for the first fifty years beyond the initial investment in the program. We present these cash flows in non-discounted dollars to simplify the “break-even” point from a budgeting perspective. If the dollars are negative (bars below $0 line), the cumulative benefits do not outweigh the cost of the program up to that point in time. The program breaks even when the dollars reach $0. At this point, the total benefits to participants, taxpayers, and others, are equal to the cost of the program. If the dollars are above $0, the benefits of the program exceed the initial investment.|
|Meta-Analysis of Program Effects|
|Outcomes measured||Treatment Age||No. of effect sizes||Treatment N||Adjusted effect sizes (ES) and standard errors (SE) used in the benefit-cost analysis||Unadjusted effect size (random effects model)|
|First time ES is estimated||Second time ES is estimated|
|Apply to 4-year college^||17||2||114478||0.110||0.113||18||0.110||0.113||18||0.110||0.331|
|Enroll in 2-year college||17||2||63872||0.002||0.023||18||0.002||0.023||18||0.002||0.923|
|Enroll in 4-year college||17||2||63872||-0.003||0.009||18||-0.003||0.009||18||-0.003||0.738|
|File a FAFSA^||17||2||966||-0.070||0.045||18||-0.070||0.045||18||-0.070||0.126|
Bergman, P., Denning, J.T., & Manoli, D. (2016). Is information enough? evidence from a tax credit information experiment with 1,000,000 students. Working Paper.
Bettinger, E.P., Long, B.T., Oreopoulos, P., & Sanbonmatsu, L. (2012). The role of application assistance and information in college decisions: Results from the H&R Block FAFSA Experiment. The Quarterly Journal of Economics, 127(3), 1205–1242.
Bird, K.A., Castleman, B.L., Goodman, J., & Lamberton, C. (2017). Nudging at a national scale: experimental evidence from a FAFSA completion campaign. EdPolicy Works Working Paper Series No 54.
Blagg, K., Chingos, M.M., Graves, C., Nicotera, A., & Shaw, L. (2017). Rethinking consumer information in higher education (Education Policy Program). Washington, DC: Urban Institute.
Hoxby, C., & Turner, S. (2013). Expanding college opportunities for high-achieving, low income students, (SIEPR Discussion Paper No. 12-014). Stanford, CA: Stanford Institute for Economic Policy Research.