TY - JOUR T1 - Student Responses to Merit Scholarship Retention Rules JF - Journal of Human Resources JO - J Hum Resour SP - 895 LP - 917 DO - 10.3368/jhr.XL.4.895 VL - XL IS - 4 AU - Christopher M. Cornwell AU - Kyung Hee Lee AU - David B. Mustard Y1 - 2005/10/02 UR - http://jhr.uwpress.org/content/XL/4/895.abstract N2 - 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. ER -