Economics at your fingertips  

The Enrollment Effects of Merit-Based Financial Aid: Evidence from Georgia's HOPE Scholarship

Christopher Cornwell (), David Mustard () and Deepa Sridhar

HEW from University Library of Munich, Germany

Abstract: This paper examines the effects of Georgia's merit-based HOPE Scholarship on college enrollment. Introduced in 1993, the HOPE Scholarship covers tuition, fees, and book expenses for students attending Georgia public colleges, and provides a subsidy of comparable value to students attending in-state private colleges, without any income restrictions. Treating HOPE as a natural experiment, we contrast college enrollment in Georgia with those in the other member states of the Southern Regional Educational Board using IPEDS data for the period 1988-97. We estimate that the HOPE increased total freshmen enrollment by 5.9 percent, with the gains concentrated in 4-year schools. For freshmen recently graduated from high school attending 4-year colleges, two-thirds of the program effect is explained by a decrease in students leaving the state. Both white and black enrollments increased because of HOPE, with the state's historically-black institutions playing an important role. Finally, the total HOPE-induced enrollment increase represents only 15 percent freshmen scholarship recipients.

Keywords: Higher Education; Enrollment; HOPE; Merit-based Aid (search for similar items in EconPapers)
JEL-codes: I (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2005-01-05
Note: Type of Document - pdf; pages: 33
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (30) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in HEW from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().

Page updated 2018-08-23
Handle: RePEc:wpa:wuwphe:0501002