As the pool of outstanding college bound students has declined, the use of merit scholarships has increased as a means of attracting high quality students. When Boston University began again in 1974 to use merit scholarships, it decided to analyze how well the awards serve their purpose. The study showed that they are effective in increasing attendance rates among needy students, but not effective in increasing attendance among those who have no financial need. Further, even among needy students the effect of the scholarships may be related to other factors such as the school offering the award and the student's academic quality. Given these findings and in light of the controversy surrounding the propriety of no-need scholarships, the widespread use of such awards seems to need further evaluation. (Author/MSE)