The creation of the Tennessee Education Lottery Scholarship (TELS) program provides a natural experiment where a difference-in-differences estimation design is employed to isolate how state merit aid funding may lead institutions to change their institutional grant aid. Principal agent and resource dependence theories together establish state and…

This study examined if the Tennessee Education Lottery Scholarship (TELS), which began in 2004, was related to student retention at the six Tennessee Board of Regents four-year institutions. This study investigated the impact of the TELS on student retention at TBR universities and general knowledge regarding retention. Post-facto data were…