This study examined the extent that a scholarship program operating in Sierra Leone and Djibouti was successful in increasing girls' persistence in basic education. Results of field studies indicated that scholarships could be appropriately targeted and delivered in ways that appear to minimize misappropriation of funds. However, the scholarships often created significant tensions between award recipients and non-recipients and among their families that frequently isolated recipient girls and led to their harassment by non-recipients. These findings are interpreted within the context of the larger debate about the relative merit of abolishing school fees for all students or targeting scholarships for only the neediest students.