1. Tennessee Education Lottery Scholarship Program Annual Report Tennessee Higher Education Commission Winter Quarterly Meeting 25 January 2007

2. …provide assistance to the general assembly and to the Tennessee Student Assistance Corporation (TSAC) by researching and analyzing data concerning the scholarship and grant programs created under this part, including, but not limited to, student success and scholarship retention. THEC shall report its findings annually to the education committee of the senate and the education committee of the house of representatives before the second Tuesday in January. Tennessee Higher Education Commission Statutory Charge

3. Tennessee Higher Education Commission Tennessee Education Lottery Scholarship Initial Eligibility Criteria, 2006-07

4. Tennessee Higher Education Commission Scholarship Recipients and Dollars Awarded 2004-05 and 2005-06 2006-07 estimate = $172 Million 2007-08 estimate = $211 Million

5. Tennessee Higher Education Commission Distribution of Scholarship Recipients by Family Income (All Award Types*) * HOPE, GAMS, ASPIRE, and Access.

6. Male Students as a Percentage of Scholarship Recipients (All Award Types*) Tennessee Higher Education Commission Males have consistently represented 43-44% of freshman scholarship recipients since the programs inception. Scholarship retention rates that lag those of females have contributed to a gradual decrease in male representation among all awardees as the program matures. * HOPE, GAMS, ASPIRE, and Access.

7. Tennessee Higher Education Commission Caucasian Students as a Percentage of Scholarship Recipients (All Award Types*) Caucasian students have consistently represented 83-84% of freshman scholarship recipients since the programs inception. Scholarship retention rates exceeding those of other student groups have contributed to a gradual increase in Caucasian representation among all awardees as the program matures. * HOPE, GAMS, ASPIRE, and Access.

8. African-American Students as a Percentage of Scholarship Recipients (All Award Types*) Tennessee Higher Education Commission African American students have consistently represented 10-11% of freshman scholarship recipients since the programs inception. Scholarship retention rates lagging those of other student groups have contributed to a gradual decrease in African American representation among all awardees as the program matures. * HOPE, GAMS, ASPIRE, and Access.

9. Tennessee Higher Education Commission Fall 2006 Freshmen 1 by Race/Ethnicity 1. Public institutions only; Tennessee residents age 19 or younger enrolled Fall 2006 as first-time freshmen. 2. First-time freshmen receiving HOPE, GAMS, ASPIRE, or Access awards.

10. Tennessee Higher Education Commission Distribution of Scholarship Recipients by Postsecondary Sector (All Award Types*) * HOPE, GAMS, ASPIRE, and Access.

11. Tennessee Higher Education Commission Percent of Fall 2006 Freshmen Attending on a Lottery Scholarship Students of Any Race/Ethnicity * Tennessee resident first-time freshmen who were 19 or younger; public institutions only. HOPE, GAMS, ASPIRE, and Access awards only. 69 percent of Fall 2006 freshmen in public institutions attended on a lottery scholarship. The percentage of students on scholarship was higher at universities than at community colleges.

12. Tennessee Higher Education Commission Percent of Fall 2006 Freshmen Attending on a Lottery Scholarship Caucasian Students * Tennessee resident first-time freshmen who were 19 or younger; public institutions only. HOPE, GAMS, ASPIRE, and Access awards only. 75 percent of Caucasian freshmen in public institutions attended on a lottery scholarship.

13. Tennessee Higher Education Commission Percent of Fall 2006 Freshmen Attending on a Lottery Scholarship African American Students * Tennessee resident first-time freshmen who were 19 or younger; public institutions only. HOPE, GAMS, ASPIRE, and Access awards only. 44 percent of African American freshmen in public institutions attended on a lottery scholarship.

14. Tennessee Higher Education Commission Percent of Fall 2006 Freshmen Attending on a Lottery Scholarship Students of Other Race/Ethnicity * Tennessee resident first-time freshmen who were 19 or younger; public institutions only. HOPE, GAMS, ASPIRE, and Access awards only. 69 percent of public college freshmen from other racial/ethnic backgrounds attended on a lottery scholarship.

15. Tennessee Higher Education Commission Academic Preparation Qualification Standards Met by Fall 2005 First-Time Freshman TELS Recipients

16. First-time Freshmen Scholarship Retention Rates by Award Type Tennessee Higher Education Commission

17. First-time Freshmen Scholarship Retention Rates by Initial Postsecondary Sector Tennessee Higher Education Commission Note: All Award Types

18. First-time Freshmen Scholarship Retention Rates by Family Income Fall 2005 to Fall 2006 Tennessee Higher Education Commission

19. Scholarship Retention Rates Fall 2005 First-Time Freshman TELS Recipients Tennessee Higher Education Commission

20. Fall 2004 TELS First-Time Freshmen: Continued Enrollment in Subsequent Fall Terms, by Original Award Type Tennessee Higher Education Commission

21. Fall 2004 TELS First-Time Freshmen: Continued Enrollment in Subsequent Fall Terms, by Original Award Type Tennessee Higher Education Commission

22. Fall 2004 TELS First-Time Freshmen: Began at a Public Institution, Lost Scholarship, but Remained Enrolled Fall 2005

23. Tennessee Higher Education Commission Fall 2004 TELS First-Time Freshmen: Began at a Public Institution, Retained Scholarship, and Remained Enrolled Fall 2005

24. Fall 2005 TELS First-Time Freshmen: Who Lost Scholarship But Remained Enrolled Fall 2006, by Family Income Tennessee Higher Education Commission

25. Indicators of Academic Preparation and Income for Fall 2005 First-time Freshman Scholarship Recipients ACTGPAAGI Lost Scholarship 21.73.15$54,108 Retained Scholarship 23.83.50$67,733 Lost Scholarship and Stayed 21.73.17$58,194 Lost Scholarship and Left 21.83.14$48,395 Note: ACT and GPA scores are averages and AGI is median.

26. Tennessee Higher Education Commission Summary Program is still maturing; Fall 2006 represents only the 2 nd year with consistent academic criteria for eligibility and retention Half of Fall 2004 first-time freshmen lost the award after one year in college; 2/3 after two years 82% of those first-time freshmen returned for their second year of college, either with or without the scholarship Among TELS forfeiters, 64% came back anyway, though this varied by sector, family income, and the level of high school academic preparation Among TELS forfeiters, stayers and leavers are similar in terms of high school academic performance, but they differ on family income Those who forfeit the scholarship but stay enrolled are more likely to migrate to a community college