Last Updated on November 17, 2023 by Robert C. Hoopes
Title: Federal Reserve Bank Report Shows Higher Success Rates for Students in Participating Institutions
Subtitle: Urban institutions perform better than rural ones, while gender and race play significant roles
The Federal Reserve Bank of Richmond has recently released its Success Rate report, shedding light on the achievements of students in participating institutions. The Success Rate, which measures the success of a cohort of students over a four-year period, showcases promising results for the majority of institutions.
Unlike the traditional IPEDS Graduation Rate, which only considers full-time students graduating within six years, the Richmond Fed Success Rate takes into account both full-time and part-time students, as well as first-time and non-first-time students. To be considered successful, students must attain an award, transfer to a four-year institution, or maintain enrollment and good standing at the four-year mark.
Comparing the two rates, the Richmond Fed Success Rate outperformed the IPEDS Graduation Rate in 62 out of 63 participating institutions. The variation between the two rates ranged from a substantial 45.7 percentage points to a relatively smaller 3.5 percentage points.
The study also revealed that urban institutions generally exhibited higher success rates compared to their rural counterparts, with one exception found in Maryland. Factors such as access to resources, networking opportunities, and support services might contribute to this difference.
Furthermore, the report highlighted that non-Pell students, those not receiving the Pell grant, tended to have higher success rates compared to their counterparts. This finding suggests that financial assistance alone might not be the sole determinant of a student’s success.
Gender also emerged as a significant factor, with female students consistently outperforming their male counterparts in terms of success rates. However, it is worth noting that the study did not delve into the underlying reasons behind this trend.
The study brought to light stark disparities in success rates between white and black students. These findings highlight the need for targeted interventions to bridge the gap and ensure equal opportunities for all students.
It is crucial to note that all data and results provided in the report are experimental and subject to change. To maintain privacy and confidentiality, the school-level data has been randomized and anonymized for this year’s extended pilot.
This comprehensive report by the Federal Reserve Bank of Richmond offers valuable insights into the success rates of students in participating institutions. As education continues to evolve and adapt, this data can serve as a benchmark for institutions aiming to improve their outcomes and provide vital support to their students.