While the popularity of state-financed merit-based scholarships has increased since the 1980s, policymakers struggle to maintain these programs because of growing costs. Some have tried to manage this tradeoff through eligibility changes or award amounts; however, little empirical research exists on the effectiveness of these changes. We add to…

The notion of merit-aid is not a new development in higher education. Although previous researchers have demonstrated the impact of state-adopted merit-aid funding on student decision-making, fewer studies have examined institutional pricing responses to broad-based merit-aid policies. Using a generalized difference-in-difference approach, we…

We provide theory and evidence about how the design of college financial aid programs affects a variety of high school, college, and life outcomes. The evidence comes from an eight-year randomized trial where 2,587 high school ninth graders received a $12,000 merit-based grant offer. During high school, the program increased their college…

Over the previous two decades, state lawmakers have made two fundamental changes to how they finance their public universities. They have shifted more of the costs of higher education to students and their families through higher tuition rates; and created new grant programs that are not solely based on financial need but require prior…

The cost of attending college has risen steadily over the past 30 years, making financial aid an important determinant of college choice for many students and a subject of concern for colleges and state governments. In this paper, we estimate the effect of rule-based merit aid assignment on students' enrollment decisions at the University of Iowa.…

In a recent paper in the "Journal of Human Resources," Dynarski (2008) used data from the 1 percent 2000 Census Public Use Microdata Sample (PUMS) files to demonstrate that merit scholarship programs in Georgia and Arkansas increased the stock of college-educated individuals in those states. This paper replicates the results in Dynarski…

Most policies seeking to improve high school achievement historically either provided incentives for educators or punished students. Since 1991, however, over a dozen states, comprising approximately a quarter of the nation's high school seniors, have implemented broad-based merit scholarship programs that reward students for their high school…

One of the major developments in financing undergraduate education in the United States in the past 20 years has been the introduction of broad-based merit-aid programs by state governments. The typical program waives tuition and fees at public colleges and universities for state residents who have attained a respectable grade-point average…

This study examines whether non-need, merit-based scholarship programs are effective in encouraging students to enroll in postsecondary education and, more specifically, attend an in-state college. National residence and migration data from 1992 to 2004 (alternating even years) were used within a fixed effect regression framework. This approach,…

Louisiana concentrates its postsecondary financial aid funding in merit-based aid programs, as opposed to need-based aid programs. This study illuminates the distribution of Louisiana's merit-based financial aid program, Louisiana's Tuition Opportunity Program for Students (TOPS), to students from difference socioeconomic backgrounds by describing…

The Kentucky Education Excellence Scholarship (KEES) is a merit-based scholarship program intended to increase college access, long-term academic commitment, and retention of top students within the state. KEES uses a heavily graduated award structure and both high school grade point average and standardized test scores to establish award amounts.…

The "Higher Education Reconciliation Act of 2005" created two new grant programs for undergraduates: the Academic Competitiveness Grant (ACG) program and National Science and Mathematics Access to Retain Talent (National SMART) Grant program. The ACG program is intended to encourage students to take challenging courses in high school and thus…

In 1993, the creation of Georgia's HOPE Scholarship Program accelerated interest in understanding the effects of merit-based student financial aid. This article compares a sample of "borderline" HOPE recipients (students just above the eligibility threshold) with similar nonrecipients to examine differences on four college performance outcomes.…

This report examines how seven merit scholarship programs in six southern states help increase participation in postsecondary education. The programs are: Florida Bright Futures; Georgia HOPE Scholarships; Kentucky Educational Excellence Scholarships; Louisiana Tuition Opportunity Program for Students; Maryland Science and Technology Scholarship…