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Financial Aid |
Merit Scholarships
By Carl Krueger
May 2005
Ever since Georgia revolutionized student financial aid with
the HOPE scholarship in 1993, merit-based scholarships have grown in
popularity. Unlike need-based aid,
which provides federal or state assistance for low-income students, merit scholarships
theoretically award financial aid on the basis of academic achievement. Merit
awards are distributed on the basis of high school grade-point averages and
standardized test scores instead of income level or financial need. Proponents
claim these scholarships discourage top-level students from leaving their home
states and attending college elsewhere. They also insist that merit aid allows
colleges to draw from and admit a broader range of students, thereby increasing
diversity and access. Despite the advantages, opponents say a number of
troubling questions have arisen since the inception of merit scholarship
programs nearly a decade ago. Critics point to the predominantly white,
predominantly wealthy recipients of the awards and wonder if equity has been
lost as a result of merit-based aid.
Accusations of grade inflation accompany statistics that
show an average of six out of 10 HOPE recipients every year fail to maintain a
B-average once in college.[1]
The high price tag of the scholarships has led some states to seek somewhat
controversial sources of funding from lotteries or tobacco settlements. Recently,
some states have been forced to rethink their merit scholarship programs due to
budget shortfalls. Georgia, for example, scaled back its program in 2004,
reducing the amount of the award and changing some of the eligibility
standards. Whatever the problems, the
appeal of merit scholarships is still strong among legislators and the general
public in many states. Currently 17 states offer merit scholarships. Below is a
list of key policy components for each state.
KEY:
Legislation: Is there a statute on the books?
Is there a program Web site?
Eligibility: How is merit defined in a
particular state? Who is eligible for merit-based aid and why?
Funding Source: What is the source of
funding?
Duration: How long does the award last?
Maintenance: What does it take to maintain the
grant/scholarship? How well does the recipient have to perform in college?
Amount and Use: What is the amount of the
award for each student? What expenses does the award cover? Can it be used for
tuition only? Can it also cover books? Can the award be used at both public and
private universities? Can the award be used at out-of-state institutions?
SUMMARY:
|
Participating
States |
Eligibility (Some
states overlap) |
|
|
|
Amount
and Use |
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17 |
Top
Percentile = 4 GPA +
SAT/ACT Scores = 10 State-Mandated
Test = 2 Income
Restrictions = 3 Diploma/GED
Only = 2 |
General
State Revenues = 8 Lottery
= 6 National
Tobacco Settlement = 2 Interest
on Land Sales = 1 |
4
years/8 semesters = 9 “Standard”
Degree Time = 4 Two
years = 1 One-time
Payment = 3 |
GPA = 11 Credit
Hours = 3 “Satisfactory”
Progress = 3 |
Tuition
and Fees Only = 7 All
Education-related Costs = 9 Tuition
and Book Allowance = 1 |
|
|
|
|
Funding
Source |
|
|
|
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Alaska: http://www.alaska.edu/scholars/ |
ALASKA STAT. § 14.43.930:
University of Alaska Scholars Award |
Top 10% of graduating seniors from Alaska High Schools.
Each high school sets its own criteria. |
Interest on land leases and sales |
Award available for eight semesters. Must graduate within
six years of enrollment. Must claim
award within 16 months of high school graduation. |
Must be a full-time student making “satisfactory” progress
towards completion of degree. Must be in good financial standing and follow
the student code of conduct. |
Four year, $11,000 award ($1,375 per semester) covers
tuition, fees, books, room, board, transportation and other expenses at
the University of Alaska only. |
|
Arkansas: http://www.arkansashighered.com/challenge.html |
ARK. CODE. ANN. § 6-82-1003: Academic Challenge Scholarship |
Must have a minimum 2.5 GPA in the pre-collegiate core
curriculum at an Arkansas high school, score at least 19 on the ACT and not
have a household income exceeding $50,000. |
General state revenues |
Award available for eight semesters. |
Must maintain a 2.75 GPA and complete 30 academic hours
per academic year. |
Provides up to $3,000 annually for tuition and fees at
state universities only. |
|
Florida: http://www.firn.edu/doe/brfutures/ Florida features three levels of merit scholarships: (1) Florida
Academic Scholar (FAS) (2) Florida
Medallion Scholar (FMS) (3) Florida
Gold Seal Vocational Scholar (FGSVS) |
FLA. STAT. § 240.40201: Bright Futures Scholarship |
(1) FAS = Maintain a 3.5-weighted GPA in college preparatory
courses, score a composite 1270 on the SAT or a 28 on the ACT, and complete
75 hours of community service. (2) FMS = Maintain a 3.0-weighted GPA in
college-preparatory courses, score a composite 970 on the SAT or a 20 on the
ACT. (3) FGSVS = Maintain a 3.0-weighted GPA from 15 core
credits, a 3.5- unweighted GPA in a minimum of three vocational credits in
one vocational program, and a 440 verbal and math on the SAT or a 17 in
English, an 18 in Reading and a 19 in Math on the ACT. |
Lottery |
(1) FAS/FMS = Award period covers the standard time it
takes to complete an undergraduate degree, usually 132 semester hours. Degree
must be completed within seven years of high school graduation. (2) FGSVS = Award period covers a maximum of 90 semester
hours. |
(1) FAS = Maintain a 3.0 GPA to be eligible for renewal. (2) FMS/FGSVS = Maintain a 2.75 GPA. |
(1) FAS = Covers 100% of tuition and fees, plus $300 per
semester for college- related expenses at public institutions. Students attending private institutions
receive a fixed amount based on average cost of a comparable public school. (2) FMS/FGSVS = Covers
75% of tuition and fees at public institutions, and a fixed amount for
private institutions based on average cost of a comparable public
school. |
|
Georgia: |
GA. CODE ANN. § 20-3-519.2: HOPE Scholarship |
Must maintain a 3.0 GPA in a college preparatory program
or a 3.2 GPA in a technical/career preparatory program to qualify as a HOPE
scholar. |
Lottery |
Award ends after 127 semester hours of degree credit. |
Must maintain a 3.0 GPA to remain eligible. No minimum
hours or credits at public institutions, but private school students must be
enrolled full time (12 hours). |
Covers $1,500 of tuition and fees, plus a $150 book
allowance, per semester at public institutions. Students attending private institutions receive $3,000 per
academic year. Must be enrolled in a branch of the University System of
Georgia, a branch of the Georgia Department of Technical and Adult Education
or an approved private institution. |
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Kentucky: http://www.kheaa.com/keeshome.html |
KY REV. STAT ANN. § 164.7877: Kentucky Educational Excellence Scholarship |
Students must have a minimum 2.5 GPA while taking 22 units
of high school graduation requirements to be eligible for the base
award. |
Lottery |
Award available for eight semesters. Degree must be completed in a maximum of
five years. |
During the freshman year, a student must maintain a 2.5
GPA. After the first year, a 3.0 GPA is required to keep the full award.
Students must be enrolled on at least a half-time basis (six hours) to
receive a portion of the scholarship. |
Students who earn a 2.5 GPA in high school are eligible
for the base award amount of $125 a year. Students who maintain a higher GPA
receive more funding (a 4.0 = $500). Students who score a 15 or more on the
ACT are eligible for bonus funding (the bonus ranges from $36 for a score of
15 to $500 for a score of 28 or higher). The award covers all education
related expenses at all accredited public and private institutions of higher
education in Kentucky. If a program of study is not offered in Kentucky, a
recipient may use the award at an out-of-state school. |
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Louisiana: http://www.osfa.state.la.us/schgrt6.htm Louisiana features four levels of merit scholarships: (1) TOPS Tech (2) TOPS Opportunity (3) TOPS Performance (4) TOPS Honors |
La. R.S. 17:3048.1: Tuition Opportunity
Program for Students |
GPA in core curriculum: Tech = 2.5 Opportunity = 2.5 Performance = 3.5 Honors = 3.5 ACT Scores: Tech = 19 Opportunity = 20 Performance = 23 Honors = 27 |
General state revenues |
Award available for eight semesters. |
Must complete at least 24 credit hours each academic year. |
Award covers cost of tuition, but does not include
technology or athletic fee.
Performance award offers an additional $400 cash stipend per semester,
while the Honors award provides an extra $800. Award can only be used at
accredited Louisiana postsecondary institutions. |
|
Massachusetts: http://www.doe.mass.edu/FamComm/Student/122004adams_koplik.html |
Mass. Gen Laws ANN.
CH. 15A § 16: John and Abigail Adams Scholarship Program |
Rank in top 25% on Massachusetts
Comprehensive Assessment System (MCAS) by end of junior year. Those who rank in the top 10% receive an additional fee waiver. |
General state revenues |
Maximum of four years. |
Complete college studies in four years or less and
maintain a 3.0 GPA Students who receive additional fee waiver must maintain a
3.3 GPA |
Award covers cost of tuition at any Massachusetts public
university, state college or community college. Students who rank in the top 10% also receive a $2,000 fee
waiver in addition to tuition. |
|
Michigan: http://www.meritaward.state.mi.us/ |
MSA § 15.2097: Michigan Merit Award |
Successful completion of the Michigan Educational
Assessment Program (MEAP) High School Tests (HST) in reading, writing, math
and science. Students who score at
Level 1 or Level 2 automatically meet all scholarship requirements and
receive the full award. Students who score in the 75th percentile on the ACT
or SAT or achieve qualifying scores on the ACT Work Keys job skills
assessment test also are eligible for the award. |
National tobacco settlement |
Award is a one time only, nonrenewable grant. |
N/A |
A one-time, lump sum of $2,500 covering tuition, fees,
books, “reasonable” room and board, transportation, dependent care during
class time and disability expenses is available for use at approved Michigan
institutions of higher learning. An award of $1,000 is offered in certain
instances for students attending approved out-of-state colleges. Award also
can be used for graduate school, provided program begins no later than seven
years after high school graduation. |
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Mississippi: http://www.msms.doe.k12.ms.us/~jhawkins/MSAid.html |
MISS. CODE ANN. § 37-106-31: Eminent Scholars Fund |
Maintain a 3.5 GPA in high school and score a 29 or higher
on the ACT or a 1280 or higher on the SAT.
|
General state revenues |
Award renewable for four years. |
Full-time students must reapply on a yearly basis and
maintain a 3.5 GPA throughout all four years. |
Award of $2,500 per year covers all education-related
costs at Mississippi schools only. |
|
Missouri: http://www.mocbhe.gov/mostars/heasp.htm |
MO REV.STAT. § 173.198: Missouri Higher Education Academic Scholarship
Program |
Must have a composite score on the ACT or SAT in the top
three percentile. |
General state revenues |
Award renewable for up to10 semesters or completion of
degree, whichever comes first. |
Must be a full-time student and “maintain satisfactory
academic progress” as defined by each individual school. |
Annual award of $2,000 is distributed each semester in
$1,000 increments. |
|
Nevada: http://millennium.state.nv.us/new/ |
NEV. REV. STAT. ANN. § 396.930: Millennium Scholarship |
Complete high school with a 3.0 GPA and pass all areas of
the Nevada High School Proficiency Examination. |
National tobacco settle-ment |
Award available for eight academic years after high school
graduation or until the successful completion of an undergraduate degree,
whichever comes first. |
Must enroll for at least 12 credit hours every semester at
a university or six credit hours at a community college and maintain a 2.0
GPA each semester. |
Students receive $80 per credit hour at a university and
$40 per credit hour at a community college. The amount of the award cannot
exceed the cost of attendance. |
|
New Mexico: http://www.nmche.org/financialaid/lotto.html |
N.M. STAT. ANN. § 21-1-4.3: Lottery Success Scholarship |
Award available to all students who graduate from a New
Mexico high school or obtain a New Mexico GED. Students are not eligible for the award until successful
completion of the first semester of college. |
Lottery |
Award available for eight consecutive semesters. |
Must receive a 2.5 GPA during the first semester of
college to receive the award and “maintain satisfactory academic progress”
thereafter. |
Award pays up to 100% of tuition only at New Mexico public
colleges or universities, “depending on funding availability.” |
|
South Carolina: http://www.che400.state.sc.us/web/Student/LIFE/LIFE%20home.html |
S.C. CODE ANN. § 59-149-10: LIFE Scholarship |
Eligible students must graduate from a South Carolina high
school with a minimum 3.0 GPA. In
2002 and after, students also must score at least an 1100 on the SAT or a 24
on the ACT. |
General state revenues |
Award renewable for four academic years. |
Students must maintain a 3.0 GPA and complete a minimum of
30 credit hours each academic year. |
Students who attend four-year colleges or universities
receive $3,000 per academic year, or $1,500 per semester. Students attending
two-year colleges receive the cost of tuition and fees for 30 credit hours
per year. |
|
Tennessee: Tennessee offers five different awards: (1) Tennessee
HOPE Scholarship (2) Tennessee
HOPE Access Grant (3) General
Assembly Merit Scholarship (4) Need-based
Supplemental Award (5) Wilder-Naifeh
Technical Skills Grant |
TENN. CODE ANN. § 49-4-901-928: Tennessee Education Lottery Scholarship Program |
Must be a Tennessee resident for at least one year by May
1 of the year they complete high school and: (1) HOPE
Scholarship: Earn 3.0 GPA and a score at least 21 on the ACT or 980 on the
SAT. (2) HOPE
Access Grant: Earn 2.75 GPA and score 18 on the ACT or 860 on SAT. Parent’s or student’s annual income must
be less than $36,000. (3) General
Assembly Scholarship: Must qualify for a HOPE Scholarship and earn a 3.75 GPA
and score 29 on the ACT or 1280 on the SAT. (4) Need-Based
Award: Must qualify for a HOPE Scholarship.
Parent’s or student’s annual income must be less than $36,000. (5) Wilder-Naifeh
Technical Skills Grant: No GPA, ACT, or SAT requirement. |
Lottery |
(1) HOPE
Scholarship: Award is renewable every year, up to five years or 120 credit
hours. (2) HOPE
Access: One time award (3) Wilder-Naifeh:
Renewable every year until completion of a technical program. |
Maintain a 2.75 cumulative GPA at the end of 24 credit
hours. Maintain a 3.0 cumulative GPA at the end of 48, 72, 96 and 120 credit
hours. |
For students attending Tennessee universities, colleges
and technology centers. (1) HOPE
Scholarship: $3,000 a year at 4-year institutions; $1,500 at 2-year
institutions. (2) HOPE
Access: $2,000 at four-year institutions; $1,250 at two-year institutions. (3) General
Assembly Scholarship: $1,000 a year. (4) Need-based
Award: $1,000 a year. (5) Wilder-Naifeh
Grant: up to $1,250 at any Tennessee Technology center. |
|
Washington: http://www.hecb.wa.gov/financialaid/wps/wpsindex.asp |
S.B. 5598: Promise Scholarship |
Students must be in the top 15% of their Washington high
school’s graduating class and have a family income of no more than 135% of
the state’s median the year they graduated. Students who score a 1200 or
higher on their first attempt at the SAT also are eligible. |
General state revenues |
Scholarship is available for two years. |
Must attend school at least half time. |
A maximum amount of $1,176 per term covers any
education-related expense at all accredited Washington institutions of higher
learning. Due to funding availability, the current prorated amount is $1,542. |
|
West Virginia: http://www.hepc.wvnet.edu/resources/133-7.pdf |
W. VA. Code § 18C-7-6: West Virginia Providing Real Opportunities for Maximizing
In-state Student Excellence (PROMISE) |
Students must apply within two years of high school
graduation. Must maintain a 3.0 GPA
in core curriculum courses |
Lottery funds, amuse-ment taxes |
Two-years at a two-year institution; four years at a
four-year institution. Students must complete a minimum of 30 credit hours
per year and meet the institution’s academic progress requirements. |
Earn a 2.75 GPA during the first year, 3.0
thereafter. |
Covers tuition and fees at West Virginia universities,
colleges and community colleges. |
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Wyoming: http://uwadmnweb.uwyo.edu/sfa/schlrshp.htm |
University of Wyoming National Merit Scholarship |
High school seniors who have attained Finalist standing in
the National Merit Scholarship program and who have designated the University
of Wyoming as their first-choice institution may be selected by the
University of Wyoming Office of Student Financial aid to receive the
scholarship – typically, only four-six students per year are selected. |
General state revenues |
One-time award. |
N/A |
Award ranges from $500 to $2,000 based on need. |
Carl Krueger serves as a policy analyst in both the
Information Clearinghouse and the Policy Studies and Programs department for
the Education Commission of the States.
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©
2005 by the Education Commission of the States (ECS). All rights reserved.
ECS is a nonprofit, nationwide organization that helps state leaders shape
education policy. To request permission to excerpt part of this publication, either in print or electronically, please fax a request to the attention of the ECS Communications Department, 303.296.8332 or e-mail ecs@ecs.org. |
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