Are State Non-Need, Merit-Based Scholarship Programs Impacting College Enrollment?

This study examines whether non-need, merit-based scholarship programs are effective in encouraging students to enroll in postsecondary education and, more specifically, attend an in-state college. National residence and migration data from 1992 to 2004 (alternating even years) were used within a fixed effect regression framework. This approach, combined with interaction terms that capture different program implementation periods, is an attempt to enhance the current understanding of scholarship programs on college enrollment. The results suggest that these programs have a significant impact on college enrollment after controlling for state-level factors, but the effect depends on when the program was implemented, who is eligible to receive aid, and how much aid these students are awarded. © 2009 American Education Finance Association