Impact of financial aid on the reduction of university dropouts: Case of the State Technical University (Ecuador)
Abstract
Higher education is essential for socio-economic development, but university dropout remains a challenge in developing countries. In Ecuador, the State Technical University of Quevedo faces high dropout rates, despite offering different financial aid programs. In this context, this study analyzes the impact of financial aid on the reduction of dropout and its limitations. To fulfill this purpose, a mixed research approach was used, with a non-experimental cross-sectional design, collecting information from 988 beneficiary students through a survey and institutional data. Through a binary choice regression model (Logit), the relationship between financial aid and the probability of dropout was evaluated. The results indicate that the increase in income significantly decreases dropout, but factors such as family responsibilities and perception of low institutional support increase the risk of dropout. In addition, the lack of clarity in the allocation criteria and the insufficiency of the amount awarded reduce the effectiveness of financial support. It is concluded that financial aid is a key element to reduce dropout, but it requires complementary strategies, such as academic advice and student employment programs.
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