In order to determine whether awarding state and federal financial aid to students had a positive effect on student persistence, grade point averages (GPA) and chances of graduating, this study was conducted at North Greenville College (South Carolina). The 252 first-time, full-time freshmen who entered the college in fall 1975 were divided into aid recipients (58.3%) and non-recipients (41.7%); those receiving aid were further divided according to amount received: under $1,000, $1,000 to $1,999, $2,000 to $2,999, $3,000 to $3,999, and $4,000 or more. There appeared to be a positive correlation between receipt of financial aid and the students' persistence and graduation rate. A total of 77.9% of the aid recipients graduated as compared to 22.1% of those receiving no aid; awards of larger amounts of aid, though not over $4,000, were effective in producing more graduates. Larger amounts of aid did not appear to result in higher GPAs; the most effective amount of aid in this area was $1,000 to $1,999. Resulting recommendations included: aid packages of between $3,000 and $3,999, the increase of financial aid staff, and the revision of the current financial aid policy. (Author/AYC)