RT Journal Article SR Electronic T1 Student Responses to Merit Scholarship Retention Rules JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 895 OP 917 DO 10.3368/jhr.XL.4.895 VO XL IS 4 A1 Cornwell, Christopher M. A1 Lee, Kyung Hee A1 Mustard, David B. YR 2005 UL http://jhr.uwpress.org/content/XL/4/895.abstract 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.