We use the natural experiment of a state lottery scholarship to measure the effect of generous financial aid on graduation rates at New Mexico's flagship public university. During the study period, the scholarship program paid full tuition for eight semesters for any state resident earning a 2.5 grade point average in their first semester at any…

This study tested the Bennett hypothesis by examining whether four-year colleges changed listed tuition and fees, the amount of institutional grants per student, and room and board charges after their states implemented statewide merit-based aid programs. According to the Bennett hypothesis, increases in government financial aid make it easier for…

This study examines the impact of merit-aid programs on secondary course taking patterns. Specifically, this study uses difference-in-differences to analyze state-level Advanced Placement (AP) participation and examination data pre and post merit-aid adoption. Results indicate increases in AP participation and number of total examinations after…

In this study, the authors use college enrollment and migration data to test the brain drain hypothesis. Their results suggest that state merit scholarship programs do indeed stanch the migration of "best and brightest" students to other states. In the aggregate and on average, the implementation of state merit aid programs increases the…

Despite the scholarly attention on the effects of merit aid on college access and choice, particularly on the significant effect that states' varied eligibility criteria play, no studies have examined the policy process through which merit aid criteria are determined. This is surprising given the recent attention to state-level policy dynamics and…

The 1990s ushered in a new age in state financial support for college students, with the rise of broad-based merit scholarships. Starting in the South and spreading from there, the premise of the "new generation" of programs was simple--states should be in the business of rewarding student performance, retaining the state's "best…