Social and Behavioral Sciences Commons^™

Does The Timing Of Money Matter? A Case Study Of The Arkansas Academic Challenge Scholarship, Jessica Goldstein, Jonathan N. Mills, Albert Cheng, Collin E. Hitt

Arkansas Education Reports

This paper examines the effect of a state-financed merit-aid scholarship—the Arkansas Academic Challenge Scholarship (ACS)—on post-secondary outcomes at a large university in Arkansas. Exploiting scholarship eligibility requirements, we implement a fuzzy regression discontinuity design to identify the scholarship’s causal impacts on college outcomes. The analysis focuses on currently enrolled sophomores, juniors, and seniors who receive the scholarship to investigate the broad impacts of receiving money at nontraditional points in an individual’s college trajectory. Findings indicate small, negative impacts of scholarship receipt on short-run outcomes such as GPA and credit accumulation, but large statistically significant declines in the likelihood of graduating …