{"title":"Test-Optional Admissions and Student Debt","authors":"Sean E. Mulholland, Alexia Hope Thompson","doi":"10.1007/s11293-025-09834-2","DOIUrl":null,"url":null,"abstract":"<div><p>Adopting a test-optional admissions policy alters admissions, enrollment and, potentially, pricing by four-year colleges. With less academic information about applicants and test-optional market segmentation, those admitted under a test-optional policy may face higher prices and accumulate more debt. Combining student debt data from The Institute for College Access & Success from 2000 and 2003-2015 with test-optional admissions data from the National Center for Fair and Open Testing for 2000-2015 in a two-way fixed effects estimator with institution-specific trends and controls, we find that private college graduates admitted under a test-optional policy borrow $1,022 (2016$), or 4.1 %, more than those required to submit their scores. Using the Callaway and Sant'Anna (<i>Journal of Econometrics, 225</i>(2), 200–230, 2021) estimator with multiple time-period treatments, debt is 4.1 % to 8.3 % higher. The evidence suggests that this larger debt is not a result of pricing power through market segmentation, but by selective institutions using price as an additional screening process in response to less information about applicants. Applicants and their families must weigh the ease of applying test-optional against the higher net price and, potentially, larger debt associated with attending test-optional institutions.</p></div>","PeriodicalId":46061,"journal":{"name":"ATLANTIC ECONOMIC JOURNAL","volume":"53 3","pages":"213 - 230"},"PeriodicalIF":0.8000,"publicationDate":"2025-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ATLANTIC ECONOMIC JOURNAL","FirstCategoryId":"1085","ListUrlMain":"https://link.springer.com/article/10.1007/s11293-025-09834-2","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}
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Abstract
Adopting a test-optional admissions policy alters admissions, enrollment and, potentially, pricing by four-year colleges. With less academic information about applicants and test-optional market segmentation, those admitted under a test-optional policy may face higher prices and accumulate more debt. Combining student debt data from The Institute for College Access & Success from 2000 and 2003-2015 with test-optional admissions data from the National Center for Fair and Open Testing for 2000-2015 in a two-way fixed effects estimator with institution-specific trends and controls, we find that private college graduates admitted under a test-optional policy borrow $1,022 (2016$), or 4.1 %, more than those required to submit their scores. Using the Callaway and Sant'Anna (Journal of Econometrics, 225(2), 200–230, 2021) estimator with multiple time-period treatments, debt is 4.1 % to 8.3 % higher. The evidence suggests that this larger debt is not a result of pricing power through market segmentation, but by selective institutions using price as an additional screening process in response to less information about applicants. Applicants and their families must weigh the ease of applying test-optional against the higher net price and, potentially, larger debt associated with attending test-optional institutions.
实行非考试录取政策改变了四年制大学的招生、招生，甚至可能改变了四年制大学的定价。由于申请者的学术信息较少，以及非必考录取市场细分，按照非必考录取政策录取的学生可能面临更高的录取价格，并积累更多的债务。结合2000年至2003年至2015年大学入学成功研究所（Institute for College Access & Success）的学生债务数据，以及2000年至2015年国家公平与公开考试中心（National Center for Fair and Open Testing）的非考试录取数据，我们发现，根据非考试录取政策录取的私立大学毕业生比要求提交分数的学生多借了1,022美元（2016美元），即4.1%。使用Callaway和Sant'Anna （Journal Econometrics, 225(2), 200 - 230,2021）估算器进行多时间段处理，债务高出4.1%至8.3%。有证据表明，这种较大的债务不是通过市场分割获得定价权的结果，而是选择性机构在对申请人信息较少作出反应时，将价格作为额外筛选过程的结果。申请人和他们的家庭必须权衡申请非必考院校的便利性和更高的净学费，以及就读非必考院校可能带来的更大债务。
期刊介绍：
The Atlantic Economic Journal (AEJ) has an international reputation for excellent articles in all interest areas, without regard to fields or methodological preferences. Founded in 1973 by the International Atlantic Economic Society, a need was identified for increased communication among scholars from different countries. For over 30 years, the AEJ has continuously sought articles that traced some of the most critical economic changes and developments to occur on the global level. The journal''s goal is to facilitate and synthesize economic research across nations to encourage cross-fertilization of ideas and scholarly research. Contributors include some of the world''s most respected economists and financial specialists, including Nobel laureates and leading government officials. AEJ welcomes both theoretical and empirical articles, as well as public policy papers. All manuscripts are submitted to a double-blind peer review process. In addition to formal publication of full-length articles, the AEJ provides an opportunity for less formal communication through its Anthology section. A small point may not be worthy of a full-length, formal paper but is important enough to warrant dissemination to other researchers. Research in progress may be of interest to other scholars in the field. A research approach ending in negative results needs to be shared to save others similar pitfalls. The Anthology section has been established to facilitate these forms of communication. Anthologies provide a means by which short manuscripts of less than 500 words can quickly appear in the AEJ. All submissions are formally reviewed by the Board of Editors. Officially cited as: Atl Econ J
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