Tuesday, February 24, 2009

Effects of a Performance-Based Scholarship Program for Low-Income Parents

From Online Overview:
An investment in postsecondary education has been repeatedly shown to pay high monetary and nonmonetary dividends to students and society at large. Despite such benefits, research shows that close to half of all students who matriculate at a community college drop out before graduating and do not complete a degree at any other college or university within a six-year time frame. The reasons for this are many, ranging from weak academic preparation to difficulties balancing work, family, and school obligations.

To study the effect of supplemental financial aid with an incentive component to encourage academic success and persistence, two New Orleans-area colleges operated a performance-based scholarship program with counseling in 2004-2005. The program was targeted to low-income parents as part of MDRC’s multisite Opening Doors demonstration. With funding from the Louisiana Department of Social Services and the Louisiana Workforce Commission, the colleges offered students $1,000 for each of two semesters ($2,000 total) — distributed in three separate payments each semester — if they met two conditions: They had to enroll in college at least half time and they had to maintain an average grade of “C” or better. Students did not have to be welfare recipients, and the scholarships were paid in addition to federal Pell Grants. Program counselors monitored whether students met benchmarks, and physically handed the students their checks at the beginning, middle, and end of the semester.

Source: MDRC

Download full pdf report | Download pdf executive summary | Link to online overview

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