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Student Responses to Merit Scholarship Retention Rules

  • Christopher M. Cornwell
  • Kyung Hee Lee
  • David B. Mustard

A common justification for state-sponsored merit scholarships like Georgia’s HOPE program is to promote academic achievement. However, grade-based retention rules encourage other behavioral responses. Using longitudinal records of enrolled undergraduates at the University of Georgia between 1989 and 1997, we estimate the effects of HOPE on course-taking, treating nonresidents as a control group. First, we find that HOPE decreased full-load enrollments and increased course withdrawals among resident freshmen. Second, the scholarship’s influence on course-taking behavior is concentrated on students whose predicted freshmen GPAs place them on or below the scholarship-retention margin. Third, HOPE substantially increased summer school credits.

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File URL: http://jhr.uwpress.org/cgi/reprint/XL/4/895
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 40 (2005)
Issue (Month): 4 ()
Pages: 895-917

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Handle: RePEc:uwp:jhriss:v:40:y:2005:i:4:p:895-917
Contact details of provider: Web page: http://jhr.uwpress.org/

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