In 1993, the creation of Georgia's HOPE Scholarship Program accelerated interest in understanding the effects of merit-based student financial aid. This article compares a sample of "borderline" HOPE recipients (students just above the eligibility threshold) with similar nonrecipients to examine differences on four college performance outcomes. The HOPE Scholarship recipients accumulated more credit hours, achieved slightly higher grade point averages, and were more likely to have graduated after 4 years of college. In addition, HOPE recipients who attended 4-year institutions of higher education were more likely to persist in college. Most merit aid recipients lost their scholarships, however, which slightly reduced recipients' advantages on grade point average and credit hour accumulation. Differences in persistence and graduation are significant only for those who maintain eligibility for the scholarship, suggesting that scholarship retention is critical if merit aid programs are to help achieve several of the broad goals of higher education.