An Assessment of HOPEStyle Merit Scholarships

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An Assessment of HOPE-Style Merit Scholarships

• Christopher Cornwell
• University of Georgia

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Background

• Proliferation of large-scale, state-sponsored
  merit aid
• Georgias HOPE Scholarship as the model
• Common features
• Eligibility based on high-school GPA (and
  sometimes test scores)
• No means tests
• Common justifications
• Increase enrollments in state universities
• Keep the best and brightest in state
• Promote academic achievement

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Georgias HOPE Program

• HOPE Helping Outstanding Pupils Educationally
• Introduced in 1993 and funded by a state lottery
• Almost 3.6 billion disbursed to over 900,000
  students
• Two types of aid
• Scholarship merit-based for degree-seeking
  students
• Grant not based on merit for certificate and
  diploma seekers

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Georgias HOPE Program

• Scholarship awards
• Public schools full tuition and fees 300
  book allowance
• Private schools 3000
• Eligibility and retention
• B average in HS core courses
• 3.0 in college, checked at systematic intervals

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Georgias HOPE Program
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Georgias HOPE Program

• Significant program changes
• Income cap relaxed in 1994 and eliminated in 1995
• Expanded to include non-traditional students
  (1996), home-schoolers (1998)
• Add-on scholarships (late 1990s)
• Removal of Pell offset (2001)
• Growing concern that expenditures will outstrip
  lottery revenue

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Georgias HOPE Program
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Georgias HOPE Program
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Assessing HOPE

• Enrollments
• Effect on Georgia institutions
• Effect on brain drain
• College stratification
• Academic achievement
• College GPA
• Course loads
• Course and major selection
• But do they stay?

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Enrollments
Percentage Increases in Freshmen
Enrollments Attributable to HOPE By Institution
Type and Race, 1988-97
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Enrollments
HOPE Effects on Student Migration Numbers of
Recent Freshmen in 4-Year Schools By Residency
and Destination, 1988, 92, 94, 96
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College Stratification
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College Stratification
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College Stratification
Effects of HOPE on SAT Scores and Class Rank By
Institution Type, 1989-2001
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Academic Achievement
Cumulative UGA Freshmen GPA Distributions Resident
s vs Non-Residents
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Academic Achievement
UGA Freshmen, by Residency and HOPE Status
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Academic Achievement
Percentage of Freshmen Completing a Full
Load Resident vs Non-Residents
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Academic Achievement

• Course-Load Effects at UGA
• 5.1 drop in full-load enrollment rate
• 16.1 rise in withdrawal rate
• 9.3 drop in full-load completion rate
• 3100 fewer courses taken
• Effects concentrated among students predicted to
  be on or below the retention margin
• 63 increase in summer-school course-taking in
  1st summer 44 in 2nd

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Academic Achievement

• Core-Course Selection at UGA
• .63 credit (6) drop in Math and Science credits
  in 1st year
• 1.2 credit drop over first two years
• Consistent with substitution away from courses
  that have low expected GPAs
• Major Selection at UGA
• 1.2 pct point increase in probability of
  declaring an Education major ( 50 students)
• Effect stronger among women
• 1.7 pct point decrease in probability of
  declaring a Business major

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But do they stay?
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More on HOPE

• http//www.terry.uga.edu/hope/