State Scholarship Programs to Assist and Retain Postsecondary Students

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1 State Scholarship Programs to Assist and Retain Postsecondary Students Summary States are expanding scholarship programs to increase access to postsecondary education and retain their high-achieving students. State policymakers are concerned that their best and brightest students are enrolling in out-of-state universities and are not returning to their home state upon graduation. Several states cannot find qualified candidates to fill positions in the private and public sectors. For example, with its rapid economic growth, Maryland has more jobs open in the science, engineering, computer science, and technology fields than it has prospective candidates. During the past several years, states have developed merit-based scholarships that reward academic performance during the high school years. Although most scholarships are available only for undergraduate work, some support graduate studies. Most of the scholarships can be used only for public colleges or universities, but states such as South Carolina permit funds to be used at private institutions. States will continue to seek innovative approaches to persuade students to attend an in-state college or university and remain in the state upon graduation. This StateLine profiles a representative sample of state scholarship programs, discusses several proposed scholarship programs introduced during this year s legislative sessions, and examines state prepaid tuition programs. The publication does not catalogue all existing state scholarship programs; its aim is to increase awareness of the availability and diversity of these programs. The National Governors Association (NGA) Center for Best Practices will continue to collect scholarship program information and welcomes the submission of descriptions of programs not highlighted in this StateLine. State Scholarship Programs Seek to Increase Student Access and Retention Georgia Helping Outstanding Pupils Educationally (HOPE) Scholarship Program The HOPE Scholarship Program rewards students hard work with financial assistance in degree, diploma, or certificate programs at any eligible Georgia public or private college, university, or public technical institute. Scholarships also are available to students who received a high school equivalency diploma after July 1, Funding is provided by Georgia s lottery for education. Meet the residency requirements set forth by the board of regents. Be a U.S. citizen or permanent resident alien who meets the definition of an eligible noncitizen. Attend a branch of the University of Georgia system, a private college or university, or a branch or affiliated branch of the Georgia Department of Technical and Adult Education. Be admitted, enrolled, and classified as an undergraduate student. (There is no minimum number of hours of enrollment.) Additional Information Students who meet the eligibility criteria for the HOPE Scholarship Program also receive a book and supplies allowance of $100 per quarter. The student must be enrolled in a minimum of two classes (six credit hours). Students who are enrolled less than half time receive an

2 allowance of $50 per quarter. Students may receive these funds regardless of whether they receive financial assistance from other programs. Students must maintain a 3.0 grade point average (GPA) on a 4.0 scale to continue receiving the scholarship. Georgia Student Finance Commission 1-800/546-HOPE or 770/ Governor s Scholarship Program Academic scholarships are awarded to graduating Georgia high school seniors who attend a public or private college or university located in Georgia. The award is equal to the school s tuition costs, up to a maximum amount set by the legislature each year. Selected by the Georgia State Department of Education as a Georgia Scholar or named valedictorian, salutatorian, or a Student Teacher Achievement Recognition (STAR) student from an eligible Georgia public or private high school. Enrolled or accepted for enrollment as a full-time (twelve credit hours) undergraduate freshman student at an eligible college or university located in Georgia within seven calendar months following graduation from a public or private high school in Georgia. (Scholarship may be renewed for three additional years if the student maintains a 3.0 GPA and a course load of thirty to forty-five quarter hours each academic year.) May not receive nonrepayable grants or scholarships that total more than the school s total cost of education. Georgia Student Finance Commission 1-800/546-HOPE or 770/ Indiana Twenty-First Century Scholars This initiative strives to ensure that children are not denied the opportunity to attend college simply because they cannot afford to do so. To apply for the program, Indiana eighth graders who are eligible for free or reduced-price school lunches must pledge to graduate from an Indiana high school with a GPA of at least 2.0 on a 4.0 scale; stay free of drugs, alcohol, and crime; and apply for college admission and financial assistance during their senior year. In exchange for fulfillment of this contract, the state guarantees scholars the cost of four years of college tuition. Tuition scholarships are renewable for up to eight semesters. Reside in Indiana. Be enrolled in the eighth grade at an accredited Indiana school. Be eligible for free or reduced-price school lunches.

3 Take the Twenty-First Century Scholars Pledge. Philip Seabrook 317/ Hoosier Scholar Award The scholarship is based on academic merit and may be used for any education expense. The award is a $500 nonrenewable scholarship. Rank in the top 2 percent of the student s high school graduating class. Attend an approved college or university in Indiana as a full-time student. Reside in Indiana. Philip Seabrook 317/ Iowa State of Iowa Scholarships The scholarship program gives recognition and monetary awards to Iowa s top students. Each scholar is eligible to receive a one-time award of $410. Awards are determined by academic standing and may be used only at eligible Iowa postsecondary schools. Rank in the upper 15 percent of the student s class. Take the American College Testing (ACT) test or Scholastic Aptitude Test (SAT) by October of the student s senior year. Iowa College Student Aid Commission 515/ Maryland Maryland Science and Technology Scholarship Program Governor Parris N. Glendening introduced the Maryland Science and Technology Scholarship Program to address the state s economic development needs while helping to make higher education more affordable. The scholarship can be used at any eligible Maryland institution and offers an award of $1,000 for enrollment in a community college and $3,000 for enrollment in a four-year college. After graduation, each participating student works in Maryland one year for each year that a scholarship grant is awarded, or the scholarship converts to a low-interest loan.

4 The scholarship may be renewed four times to cover five years of education. As Maryland s job growth needs change with time, approved fields of study may be added or deleted by the Maryland Higher Education Commission. Maintain a B average during the student s senior year in high school. Major in high-technology disciplines, such as science, engineering, computer science, and technology fields. Start college within one year after graduation from high school. Carolyn Schmidt 410/ New York Merit Scholarship for Academic Excellence Funds are appropriated each year to award 5,000 scholarships. The state provides funding for 2,000 scholarships with a value of $1,000 each and 3,000 scholarships with a value of $500 each. The amount of the award may not exceed the individual s cost of attending a college or university in New York. Recipients may use scholarship monies to pay for tuition, required fees, laboratory fees, other institution-related expenses, books, transportation, and room and board. Each registered high school in the state is allocated a single scholarship of $1,000. The remaining $1,000 scholarships, up to a maximum of 2,000 scholarships, are distributed proportionately to high schools based on the number of their twelfth-grade students in the prior school year. All $500 scholarships are allocated in the same manner. Awards are renewable for up to four academic years of undergraduate study, or five academic years if the program of study normally requires five years as determined by the commissioner of education. Attend an approved New York State postsecondary institution. Reside in New York State for at least one year prior to receipt of the award. Additional Information High schools are required to use uniform criteria for the selection of nominees. For selection, high schools use Regents test scores, class rank, or a locally developed and administered examination of English and mathematics. New York Department of Education, Bureau of Scholarships 518/ North Dakota

5 North Dakota Scholars Program The goal of this program is to encourage the best and brightest high school graduates to remain in state to attend an institution of higher education. The recipient may use the scholarship for tuition, fees, room, board, books, supplies, and other incidental expenses related to attending the college or university. A student must maintain a cumulative 3.5 GPA for renewal of the scholarship. For this program, the state has appropriated $659,286 for fiscal Reside in North Dakota. Score in the 95th percentile on the ACT or rank in the upper 20 per-cent of high school graduating class. Enroll in a state public or private institution on a full-time basis (twelve credit hours per semester). Peggy Wipf, director of financial aid 701/ Ohio Ohio Academic Scholarship Program This scholarship program provides competitive, merit-based financial assistance to the state s most academically outstanding high school graduates who enroll for full-time undergraduate study in Ohio colleges or universities. Each year, at least one student from each participating chartered high school in the state is awarded a scholarship. Application is made through the student s high school guidance office. Scholarships provide $2,000 each year for up to four years of study. Fiscal 1998 appropriations total $8 million. Reside in Ohio. Qualify under a formula based on the student s ACT scores and GPA. Ohio Board of Regents State Grants and Scholarships Department 1-888/ South Carolina Palmetto Fellows Scholarship Program

6 The South Carolina Commission on Higher Education awards scholarships to encourage high school seniors to enroll in state colleges and universities. Another purpose of the scholarship is to help the state retain talented minority students who might otherwise pursue studies outside the state. Funds may be applied only toward undergraduate work. Palmetto Fellows may receive a scholarship of up to $5,000 annually, which can be applied toward the cost of attending the institution of the student s choice, less any other grant received. Students may receive funds for a maximum of four full years of undergraduate work. A selection committee, composed of representatives from both public and private higher education, reviews all applications. The committee considers the student s class rank, extracurricular activities, leadership ability, personal statement, and recommendation by a school district official in determining the list of finalists and alternates to be submitted to the commission. To retain their eligibility for the program, Fellows must maintain a 3.0 GPA on a 4.0 scale, maintain full-time status each semester, and earn a minimum of twelve semester credit hours during the fall and spring terms. Obtain a qualifying score on the Preliminary Scholastic Aptitude Test (PSAT), SAT, or ACT; or rank in the top 5 percent of the student s junior class. Reside in South Carolina. Enroll in a public, private, or other high school program of study that conforms with state statutes. Hold U.S. citizenship or permanent resident status that meets the definition of an eligible noncitizen under state statutes. Carol Stewart 803/ Virginia Virginia Prepaid Education Program (VPEP) VPEP enables Virginia families to lock in the cost of tomorrow s college tuition and mandatory fees at today s prices without incurring debt. Families use VPEP to prepay in-state undergraduate and graduate tuition and mandatory fees at any public college or university. Families may also apply their contribution to private and out-of-state colleges and universities. However, payments to in-state private schools must not be more than the highest in-state tuition and mandatory fees at a Virginia public school in the same academic year. Payments to out-of-state institutions must not be more than the average in-state tuition and mandatory fees at Virginia public schools for the same academic year. A variety of payment plans are available, and participants may change plans if the student s needs or family s financial situation changes. Additional information on prepaid tuition programs is provided later in this StateLine. Eligibility Requirement Meet all Virginia residency requirements.

7 Virginia Prepaid Education Program 1-888/ Proposed State Scholarship Program Has Similar Goals South Carolina Palmetto Landmark Incentive for Education (LIFE) Scholarship Governor David M. Beasley has introduced the LIFE Scholarship to increase access to higher education. These scholarships would provide up to $2,000 a year to eligible resident students who attend an accredited four-year college or university in the state. The scholarship would provide $1,000 to eligible students who attend a two-year or technical college. Funds could be used for tuition, books, and other school-related expenses. This proposal is now being debated in the state legislature. Maintain a B average during the student s senior year in high school. Score 1000 on the SAT (or an equivalent ACT score) if planning to attend a four-year college. Be admitted, enrolled, and classified as a degree-seeking undergraduate student. Maintain a B average while in college to continue receiving the scholarship. Students may not receive funds from both the Palmetto Fellows Programs and the LIFE Scholarship. Carol Stewart 803/ State Prepaid Tuition Programs Enable Families to Save for Postsecondary Education Fourteen states offer plans that allow families to pay tomorrow s tuition at today s prices. Seven states plan to begin offering these options this year. Most of the plans can be used only for state schools. Five states, including Connecticut, offer savings trusts. Thirteen other states, including New Jersey and New York, are scheduled to offer this option later this year. This option allows parents to save for their child s education tax-free. However, participants are not guaranteed that their money will keep up with tuition costs and inflation. Funds can be spent at any public or private school in any state, and taxes are paid on the investment gains at the student s lower rate. The College Savings Plan Network web site at provides links to several state plans, along with toll-fee numbers and contacts in each state. Conclusions Existing and proposed state scholarship programs aim to allow more students to participate in postsecondary education, attract them to in-state colleges and universities, and encourage them to return to or stay in the state upon graduation. Many states are providing tuition incentives for students who meet the performance expectations set forth in the scholarship program eligibility criteria. Other states have developed savings account plans that enable parents to save today for their child s future education. As the job market demands more individuals with substantive technology skills, states might also want to consider targeting scholarship funds to high-demand fields. For example, Maryland has

8 recognized the need for qualified candidates in these fields and passed legislation to provide scholarships to students who choose college majors in high-demand fields, provided the students meet the eligibility criteria. The state has identified the degree programs for which scholarships will be available, but it may add programs of study as marketplace demands change. States considering these types of tuition or loan-forgiveness programs will need assurances that jobs in the targeted fields will be available when the students complete their studies.