The effect of state funded merit aid for college tuition on student performance in high school has been largely ignored by the current literature on merit aid programs, even though one aim of these programs is to provide incentives for increased academic achievement in high school. To test for such effects, we employ a selection model for…

In this brief, the authors review some of the main goals of state student financial aid programs and provide a few examples of how these programs are organized. They also describe how state programs vary in terms of who benefits. They then discuss various possible designs for joint federal-state policymaking in this area and study their impact.…

In this dissertation, I offer two independent studies that each contribute to the literature on the college choices. The first paper examines the impact of Arizona's merit based scholarship on college enrollment decisions. I find that both enrollment and tuition and fees increased at Arizona's three large public institutions after the…

Twenty-one states offer merit scholarships that require students to maintain a minimum grade point average (GPA). Using a comprehensive administrative database from Clemson University, this study estimates the relationship between the incentives created by a South Carolina merit scholarship (LIFE) and students' academic performance. I hypothesize…

The Tennessee Education Lottery Scholarship (TELS) program was designed to meet the unique needs of the state of Tennessee while also incorporating the hallmark elements of existing merit-based aid programs in other states. Developed through a process involving elected officials and members of the academic community, the TELS program aims to…

The "Higher Education Reconciliation Act of 2005" created two new grant programs for undergraduates: the Academic Competitiveness Grant (ACG) program and National Science and Mathematics Access to Retain Talent (National SMART) Grant program. The ACG program is intended to encourage students to take challenging courses in high school and thus…

Merit aid, a discount to college costs contingent upon academic performance, is nothing new. Colleges and private organizations have long rewarded high-achieving, college-bound high school students with scholarships. While merit aid has a long history in the private sector, it has not played a major role in the public sector. At the state level,…