Tennessee Education Lottery Scholarship Program Special Report Tennessee Higher Education Commission January 27, 2011

1.Impact of the Lower GPA Requirement at the 48 Hour Benchmark on College Retention 2.Impact of the Provisional Renewal Rule 3.Lottery Scholarship and Affordability 4.The General Assembly Merit Scholarship and its Outcomes 2 Tennessee Higher Education Commission Four Distinct Studies

Scholarship Renewal Requirement Cumulative GPA Cumulative Credit Hours (Attempted) Before 2008 After 2008 Provisional Track (3.0 Term GPA also required) Tennessee Higher Education Commission

4 Main Findings : 1,607 students benefited, $5.9 million; : 1,856 students, $7.0 million; In Fall 2009, 2.75 beneficiaries accounted for 9.7 percent of TELS students with credit hours; 2.75 beneficiaries had a higher enrollment share of males, African-American, and low-income students compared to regular recipients; and The fall-to-fall scholarship renewal rate was 55.8 percent for Fall 2009 first-time 2.75 beneficiaries (88% for TELS overall). Impact of the Lower GPA Requirement at the 48 Hour Benchmark on College Retention

Predicted Chances for Returning in Next Fall Semester 5 2-year4-year Percent

Tennessee Higher Education Commission 6 Main Findings : 1,185 students benefited, $2.9 million; : 1,701 students, $4.3 million; In Fall 2009, provisional recipients accounted for 6.1 percent of TELS students with 72 or more credit hours; Provisional recipients had higher enrollment shares of males, African-American, and low-income students compared to non-provisional recipients; Approximately half of provisional students entered the provisional path at the 72 credit hour benchmark; and The fall-to-fall scholarship renewal rate for provisional students was 49 percent (86% for TELS overall). Impact of the Provisional Renewal Rule

Tennessee Higher Education Commission Lottery Scholarship and Affordability 7 Question: How much has the lottery scholarship reduced students financial burden? Main Findings Students from the most affluent families appear to have the financial ability to pay the total cost of attendance without the lottery scholarship. The scholarship dollars awarded $90 million to such students. Notes: Analysis limited to full-time, undergraduate, Tennessee resident students, age 24 or less, FAFSA applicants. Total Student Resources = Lottery + TSAA + Pell + Expected Family Contribution (EFC) Average award amounts include both TELS recipients and non-recipients

8 Total Student Resources at TBR Universities by Income Level,

9 Total Student Resources at UT Campuses by Income Level,

10 Total Student Resources at TBR Community Colleges by Income Level,

11 Total Student Resources at Private Institutions by Income Level,

12 Tennessee Higher Education Commission

The General Assembly Merit Scholarship and its Outcomes 13 This study was added to THEC reporting requirements by T.C.A. § (d) Main Findings Fall 2009: 1,389 GAMS freshmen (5.2% of TELS overall) The most recent second year scholarship renewal rate for GAMS recipients was 90% (55% for TELS overall). The 5-year graduation rate for GAMS was 81% (50% for TELS Overall) The 5-year graduation rate with the scholarship for GAMS was 73% (33% for TELS overall). The GAMS renewal requirement is relatively easier compared to similar high-ability scholarship programs in other Southern states. The Market Penetration Rate for high-achieving public high school graduates was 65 percent in Fall 2009.

Tennessee Higher Education Commission Top 20 Out-of-state Institutions Enrolling Most High Achieving Tennessee Students for the Last Four Years ( ) 14