Pell Grant recipients tend to start with more disadvantages than low- and middle-income nonrecipients, but no statistically significant differences are found in their overall persistence after 6 years.

The Pell Grant program is the largest federal grant program for undergraduates. Almost 4 million students received close to $8 billion in Pell Grants in 2000–01, with an average award of $2,040 (U.S. Department of Education 2001). Pell Grants are awarded to students who demonstrate sufficient financial need based on family income, assets, and other factors. Although most recipients come from low-income families, some students from middle-income families also receive a Pell Grant based on factors such as having siblings in college.

Due to their disadvantaged backgrounds, recipients of Pell Grants are more likely than nonrecipients to face obstacles related to their academic strength and personal circumstances (see tables 23-1 and 23-2). Recipients from low- and middle-income families are not as well prepared academically as comparable nonrecipients. The former are also more likely to have certain characteristics that have been shown to put them at risk for not completing a postsecondary education, such as delaying enrollment, being financially independent, having dependents other than a spouse, or being a single parent (NCES 97–578).

Even though Pell Grant recipients who began their postsecondary studies in 1995–96 were more disadvantaged than nonrecipients, no statistically significant differences were found in the overall persistence rates of the two groups across all institution types. Recipients are students who received any Pell Grants by 1997–98. Persistence is the attainment of any postsecondary degree or certificate, or if no degree or certificate was attained, enrollment at a postsecondary institution 6 years later. About three-quarters of students persisted at 4-year institutions regardless of Pell Grant status. Persistence rates were lower at less-than-4-year institutions.

Although no differences were found in the overall persistence rates at 4-year institutions, recipients of Pell Grants were less likely than nonrecipients to attain a bachelor's degree within 6 years. No statistically significant differences were detected in the attainment rates (bachelor's, associate's, or certificates) of recipients and nonrecipients who began at public 2-year or private for-profit less-than-4-year institutions (see table 23-3).