ERIC Number: ED451819
Record Type: Non-Journal
Publication Date: 2001-May-16
Reference Count: N/A
Rhetoric and Reality: Effects and Consequences of the HOPE Scholarship. The New Millennium Project on Higher Education Costs, Pricing, and Productivity Working Paper.
Wolanin, Thomas R.
This study examined the impact of the HOPE Scholarship Program through the lens of several key players in the higher education financing process: students and their families; colleges and universities; the states; federal higher education policy; and federal tax policy. The HOPE Scholarship is a tax credit that allows taxpayers to reduce their tax liability by the amount of the credit, which is 100% of the first $1,000 of tuition and related college fees and 50% of the next $1,000, or $1,500 of the first $2,000 of qualifying tuition paid. Students, parents, or spouses may be eligible to take the credit when various tests are met. Data from various sources show that, contrary to the rhetoric of the Clinton administration when the Hope Scholarship was enacted, it does not increase enrollments in higher education of those who are qualified but would not otherwise attend. By its terms and its structure, the HOPE Scholarship does not really benefit students from low-income families. It is not refundable, and deducts tax-free educational assistance from the tuition and fees that count for HOPE Scholarship purposes, and it considers only tuition and fees among all educational costs. The HOPE Scholarship is not available at the time that higher education bills must be paid, and it increases the complexity of financial aid for higher education faced by students and their families. The HOPE Scholarship is not justified by either of the two basic rationales for federal support of students in higher education as it neither increases the enrollment of those who would not otherwise attend nor contributes to making the United States a more fair and equitable society. (Contains 71 references.) (SLD)
Publication Type: Reports - Evaluative
Education Level: N/A
Sponsor: Ford Foundation, New York, NY.; Education Resources Inst., Boston, MA.
Authoring Institution: Institute for Higher Education Policy, Washington, DC.