Interactions Among Gift-Aid Programs in Indiana
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This report analyzes the Lilly Endowment Educational Award (LEEA) program, which provides "gift-aid" grants to Indiana residents with financial need who are full-time undergraduate college students in that state. The size of a student's LEEA is determined by a formula that considers financial need. The report is designed to provide the Lilly Endowment with information that may help it chart the future course of the LEEA program and provide other policymakers, foundations, and financial-aid officers with a better understanding of a number of issues: (1) who receives LEEAs and how they differ from students who receive federal Pell and state awards; (2) how the Pell, state, and LEEA formulas interact with each other and with external factors; (3) what happens when LEEAs are combined with all of the other types of gift-aid a student might receive; and (4) whether the LEEA program primarily increased Indiana residents' college participation, affected their choice of schools, or just reduced their loan burdens. The findings suggest that the probable main effect of the LEEA program was to reduce a student's loan burden, rather than increase participation rates or provide more choice in which school to attend.
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