Demand for Pell Grant financial aid has become difficult to predict when using the current microsimulation model. This paper proposes an alternative model that uses aggregate data (based on individuals' microlevel decisions and macrodata on family incomes, college costs, and opportunity wages) and avoids some limitations of simple linear models.…

The development of the error prone model (EPM) for the 1984-1985 student financial aid validation criteria for Pell Grant recipient selection is discussed, based on a comparison of the 1983-1984 EPM criteria and a newly estimated EPM. Procedures/assumptions on which the new EPM was based include: a sample of 1982-1983 Pell Grant recipients…

The development of a number of error-prone models to select Pell Grant recipients for validation is discussed. The 1983-1984 Pell Grant validation strategy consists of a two-stage approach: selection using Pre-Established Criteria (PEC) followed by selection using Error Prone Modeling (EPM). The database used for model development consists of a…