An Assessment of “HOPE-Style” Merit Scholarships

1. An Assessment of “HOPE-Style” Merit Scholarships Christopher M. Cornwell and David B. Mustard University of Georgia State of Education in Georgia Conference Sep. 2011

2. Background • Growth of large-scale, state merit aid • Georgia’s HOPE Scholarship as the model • Common features • Entitlement--based on high-school GPA (and sometimes test scores) • No limit on # of award winners • Scholars are eligible for multiple years • 3 objectives of HOPE: • Give students an opportunity to go to college who would not otherwise go (Access) • Keep the best and brightest in state (Choice) • Promote academic achievement

3. Large-scale State Merit Programs • Arkansas Academic Challenge (1991) • Georgia’s HOPE (1993) • Florida Bright Futures (1997) • New Mexico Success (1997) • Louisiana Tops (1998) • South Carolina Life (1998) • Kentucky Ed. Excellence Sch. (1999) • U. of Alaska Scholars Program (1999) • Washington Promise (1999) • Maryland HOPE (2000) • Nevada Millennium (2000) • West Virginia Promise (2002) • Tennessee HOPE (2004) • Massachusetts Adams Scholarship (2005) • Wyoming Hathaway (2006)

4. Georgia’s HOPE Scholarship • Scholarship awards • Public schools: historically full tuition and fees + $300 book allowance; • Now % of tuition • Private schools: $3,000 voucher • Eligibility and retention • ‘B’ average in HS core courses • 3.0 in college, checked at systematic intervals

5. Georgia’s HOPE Program • Significant program changes • Income cap relaxed in 1994 and eliminated in 1995 • Expanded to include non-traditional students (1996), home-schoolers (1998) • “Add-on” scholarships (late 1990s) • Removal of Pell offset (2001) • 2004: More difficult to earn and retain • 2011: Decouple tuition from the award

6. Georgia’s HOPE Program

7. Assessing HOPE • Financing Merit Aid • Enrollments • Effect on Georgia institutions • Effect on “brain drain” • College stratification • Academic achievement • College GPA • Course loads • Course and major selection • But do they stay? • 2011 changes

8. 1. Financing Merit Aid • Methods of financing • Lottery (Georgia, Florida, Kentucky, New Mexico, South Carolina, Tennessee) • General revenue (Arkansas, Louisiana, Washington) • Tobacco settlement (Michigan) • Video gambling (West Virginia) • Interest on land leases and sales (Alaska)

9. 1. Financing Merit Aid • What is the annual per capita spending of adults on the Georgia lottery? • What is the annual per capita spending of people at this meeting? • 73.6% of Georgia population is > 18 • 1/3 of adults do not play lottery

10. 1. Financing Merit Aid • Sales per capita = $371.39 • Sales per > 18 = $503.92 • 1/3 of adults don’t play, so … • Sales per > 18 who play = $752.13

11. 1. Financing Merit Aid

12. 1. Financing Merit Aid

13. 1. Financing Merit Aid

14. 1. Financing Merit Aid

15. 1. Financing Merit Aid

16. 2. Enrollments Percentage Increases in Freshmen Enrollments Attributable to HOPE By Institution Type and Race, 1988-97

17. 2. Enrollments HOPE Effects on Student Migration Numbers of Recent Freshmen in 4-Year Schools By Residency and Destination, 1988, 92, 94, 96

18. 3. College Stratification

19. 3. College Stratification

20. 3. College Stratification Effects of HOPE on SAT Scores and Class Rank By Institution Type, 1989-2001

21. 3. College Stratification Effects of HOPE on Acceptance and Yield Rates By Institution Type, 1989-2001

22. 4. Academic Achievement Cumulative UGA Freshmen GPA Distributions Residents vs Non-Residents

23. 4. Academic Achievement Percentage of Freshmen Completing a Full Load Resident vs Non-Residents

24. 4. Academic Achievement • Course-Load Effects at UGA • 5.1% drop in full-load enrollment rate • 16.1% rise in withdrawal rate • 9.3% drop in full-load completion rate • 3100 fewer courses taken • Effects concentrated among students predicted to be on or below the retention margin • 63% increase in summer-school course-taking in 1st summer; 44% in 2nd

25. 4. Academic Achievement • Core-Course Selection at UGA • .63 credit (6%) drop in Math and Science credits in 1st year • 1.2 credit drop over first two years • Consistent with substitution away from courses that have low expected GPAs • Major Selection at UGA • 1.2 pct point increase in probability of declaring an Education major (~ 50 students) • Effect stronger among women • 1.7 pct point decrease in probability of declaring a Business major

26. 5. But do they stay?

27. 6. 2011 Changes • Zell Miller Scholarship Program • Award covers full standard tuition • Must meet HOPE Scholarship requirements and: • Minimum 3.7 GPA in academic core classes, • 1,200 combined critical reading and math on SAT or 26 composite ACT. Test requirements must be met in single sitting. • Graduate from an eligible high school as the valedictorian or salutatorian

28. 6. 2011 Changes • 2011-2012 HOPE Scholarship • At a Georgia public college, university or technical college: • Based on the HOPE award rate; varies by school • Award amount will vary each year depending on receipts from lottery commission and expenditures of HOPE dollars

29. 6. 2011 Changes • Maintaining HOPE/Zell Miller • Earn a 3.0 GPA in college for the HOPE Scholarship. • Earn a 3.7 GPA in college for the Zell Miller • If a student loses eligibility for either the HOPE or Zell Miller Scholarship, they may regain that eligibility one time. They remain eligible for the HOPE Scholarship provided the student’s GPA is still a 3.0 or above. • If a student did not graduate from high school Academically Eligible for Zell Miller, then the student can never earn Zell Miller.

30. 2011 Changes • HOPE Eligibility Checkpoints • At the end of every Spring Semester • 30 Attempted Semester Hours • 60 Attempted Semester Hours • 90 Attempted Semester Hours • HOPE Scholarship pays for a maximum of 127 attempted semester hours. • Students graduating 2011 and beyond have a maximum of 7 years to utilize the HOPE Scholarship before their eligibility expires - Exceptions for military service

31. More on HOPE http://www.terry.uga.edu/hope/