PT  - JOURNAL ARTICLE
AU  - Cornwell, Christopher M.
AU  - Lee, Kyung Hee
AU  - Mustard, David B.
TI  - Student Responses to Merit Scholarship Retention Rules
AID  - 10.3368/jhr.XL.4.895
DP  - 2005 Oct 02
TA  - Journal of Human Resources
PG  - 895--917
VI  - XL
IP  - 4
4099  - http://jhr.uwpress.org/content/XL/4/895.short
4100  - http://jhr.uwpress.org/content/XL/4/895.full
SO  - J Hum Resour2005 Oct 02; XL
AB  - 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.