Given the increasing number of community college students aspiring to complete a bachelor's degree and the decrease in traditional college-bound high school graduates universities have started to focus their attention on the recruitment and retention of transfer students. The institution in this study is a large public research institution located in a Midwestern metropolitan area. Ninety-nine (99) scholarship recipients were matched with a group of similarly qualified non-scholarship transfer students to determine whether or not receiving a merit scholarship valued at $10,000 per year for two years had any effect on retention and graduation. The scholarship students did seem to have a slight advantage in terms of graduating within the two-year time span of the scholarship and in greater numbers than the control group. Transfer GPA at the time of matriculation to the university was the strongest predictor of graduation, but more empirical research is needed. Implications for higher education and areas for further study are discussed. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]