Examining the Effects of Aid Expansion: Student Choices Using the GI Bill and the Geographic Parity Paradox

This study examines the impact of financial aid expansion under the Post-9/11 GI Bill, specifically the Monthly Housing Allowance (MHA), on military-connected learners’ enrollment behaviors and course modality choices. Using data from 22 higher education institutions, the analysis investigates how a temporary policy change during the COVID-19 pandemic, which removed MHA discrepancies based on course modality, influenced student decisions. Results reveal that the aid expansion modestly increased course enrollments, particularly among White students and face-to-face learners, while highlighting racial/ethnic disparities in policy responsiveness. The policy effect, which disfavors military-connected learners living in medium and high cost of living areas, presents a Geographic Parity Paradox in which the students need MHA to financially support themselves while they attend college, but attending college in the manner that best suits their needs makes their MHA inadequate at providing financial support.