Student Responses to Merit Scholarship Retention Rules

Christopher Mark Cornwell · Kyung Hee Lee · David B. Mustard

121 citations0/0 files storedThe Journal of Human Resources

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Higher Education Research Studies School Choice and Performance Educational Outcomes and Influences

Abstract

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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1992Measuring Peer Group Effects: A Study of Teenage Behavior 2001School-Based Peer Effects and Juvenile Behavior 1999The Determinants of Undergraduate Grade Point Average: The Relative Importance of Family Background, High School Resources, and Peer Group Effects

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