This paper reports the results of an empirical study on the role of finances on college persistence. A quantitative causal model, that relied on several theoretical frameworks, was tested via structural equation modelling for categorical data that incorporated constructs from the financial aid literature as well as the persistence literature. The research design was longitudinal in nature and analyses were conducted on a sample of 466 college students who were attending a large public urban commuter institution in the spring of 1989. In sum, results appeared to suggest that financial aid is important, not only because it equalizes opportunities between affluent and low-income students, but also because it facilitates the integration of the student into both the academic and social components of the institution as well as influencing his or her commitment to stay in college. Contains 51 references. (Author/GLR)