STATE MERIT-BASED FINANCIAL AID PROGRAMS AND COLLEGE ATTAINMENT

This paper examines the effects of state merit-based student aid programs on college attendance and degree completion. Our primary analysis uses microdata from the 2000 United States Census and 2001-2010 American Community Survey to estimate the effects of exposure to merit programs on educational outcomes for 25 states that adopted such programs by 2004. We also utilize administrative data for the University System of Georgia to look more in depth at the effects of exposure to the HOPE Scholarship on degree completion. We find strong consistent evidence that exposure to state merit aid programs have no meaningfully positive effect on college completion.