Low-income students' preferences for higher education might depend on the uncertainty of financial aid. Using a time discontinuity design, this paper exploits the unanticipated cancellation of a nationwide Colombian merit and need-based scholarship, called "Ser Pilo Paga," to study its consequences on students' preferences for higher…

We provide evidence about college financial aid from an eight-year randomized trial where high school ninth graders received a $12,000 merit-based grant offer. The program was designed to be free of tuition/fees at community colleges and substantially lower the cost of four-year colleges. During high school, it increased students' college…