Path analysis and linear structural relations (LISREL) provide the institutional researcher with some extremely powerful statistical tools. However, they must be applied and interpreted carefully with a full understanding of their limitations and the statistical assumptions on which they are based. (Author)

The influence of financial aid on college student persistence was studied using causal modeling. The study population was 227 full-time freshmen, who enrolled in fall 1982 at a liberal arts college at a large commuter institution. All the students received financial aid. The model, which included background and academic variables, accounted for…