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Merit-Based Aid Programs

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Merit-Based Aid Programs
Merit-based aid programs have been widely adopted in the U.S, mainly serving as strategies to improve college access and stem brain strain. Current research on the impact of state merit-based aid programs mostly focus on enrollment effects and have demonstrated that these programs have successfully achieved these two goals (Monks, 2008; Ness & Tucker, 2008). However, there has been just a few studies of the unintended consequences of student major choice and course-taking behaviors influenced by merit-based aid programs. The spread of merit-based aid programs across the U.S has raised concerns that it may decrease students’ likelihood of majoring Science, Technology, Engineering and Mathematics (STEM) (Cornwell, Lee & Mustard, 2006; …show more content…
The most widely accepted rationale behind this trend has been the need to develop and retain highly qualified workers in a state (Heller & Marin, 2004; Rogers & Heller, 2003; Doyle, 2006). Some research has provided positive relationship between merit aid programs and the prevention of brain strain (Cornwell, Mustard & Sridhar, 2006; Cornwell, 2006; Orsuwan & Heck, 2008; Zhang & Ness, 2010). For example, Zhang & Ness (2010) found the implementation of state merit aid programs both increases the total 1st-year student enrollment in merit aid states and boosts resident college enrollment in these states …show more content…
Heller and Rogers (2003) used data from the Michigan Department of Education (2003), finding that while there was an initial gain in performance in scholarship qualification from the first year to the second year, there was no similar gain by the third cohort of students. Several research used Difference-in-Difference method to indicate that merit-based aid programs have little or even no effect on student completion rate (Sjoquist & Winters, 2015; Singell, 2003). Besides, research indicated that effectiveness of merit-based aid programs varies within different student groups, such as different race and economic backgrounds (Ness & Tucker 2008; Long, 2007; Singell, 2003; Singell, Waddell & Curs, 2004). African American and low-income students are more likely to perceive their eligibility for merit-based scholarships as having an impact on their decision on whether or not to attend college (Ness & Tucker,

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