A lottery scholarship inolves financial aid being granted to a certain number  of students drawn at random; sort of like the Willie Wonka golden ticket but for a chance to get funding for college. The topic becomes  complicated, however, when student and economic realities are factored into the equation. 

There are specific qualifications to be met in order to be eligible to enter the drawing for lottery scholarships. The scholarship requirements in the State of New Mexico, for example, include a high school diploma or GED, a GPA score of 2.5 or higher and New Mexico state residency. During college, a recipient of the scholarship needs to retain a 2.5 GPA and be enrolled as a full-time student to receive renewed funding for school. The scholarship goes into effect after the first semester of college.

New Mexico is not the only state with a lottery scholarship program. In most states with a lottery scholarship, funds come from proceeds from lottery ticket sales, as the name would imply. Other states with similar programs include New York, Florida and Tennessee. Each state has its own requirements attached to their lottery funds. Some are competitive and merit based, while others have a lower minimum GPA required for application and thus have fewer applicants. The Herald Sun published a list of the states with lottery scholarship opportunities, and details about each state’s basic requirements and coverage in their scholarships.   

While one scholarship alone would not undo years of socioeconomic stratification or completely change achievement outcomes between social classes, the lottery scholarship was envisioned as a way to bridge this gap. Although the scholarship aims to reduce the disparity in academic achievement between poorer and more privileged students, and to encourage all students to attend college, it may not necessarily cover the cost of school for the students who receive it.

According to Francisco Martinez, a current University of New Mexico student and lottery scholarship recipient, despite receiving other scholarships to cover the rest of his costs, he still needed to pay money out of pocket for book expenses and fees. He also says, “A good job that will work around your student schedule is hard to find in Albuquerque,” and expresses that it would be nice if the lottery scholarship did help more for those extra costs. 

Because the scholarship does not cover extra fees, books and supply costs—nor does it cover the first semester of enrollment—students with a minimal income or family support may still be unable to attend college that first semester or meet the scholarship requirements. They may also continue to struggle with course fees and book costs throughout their education.

Jennifer, a former UNM student, points out that it was still financially difficult for her to attend school, despite being a lottery scholarship recipient. She says, “the biggest problem I’ve seen is that you must complete a full semester of college before you’re eligible. My mother had to pay out of pocket to get me through the first semester. Some students may not be able to afford that first semester and can never become eligible for the scholarship.”

A study by Melissa Bender and Phillip T. Ganderton found that most students utilizing the lottery scholarship already plan to attend college and come from higher income brackets than the scholarship aims to assist. Bender and Ganderton believe the scholarship would help more impoverished students if it focused specifically on that group.

Despite the setbacks of the program itself, there are many benefits that students derive from the lottery scholarship program. College education in the United States has become more expensive, and most people take out loans even to attend state schools.

Many students I have spoken with personally would not have been able to attend college if not for the scholarship they applied for.

Francisco, for example, says, “When it comes to financial situations, it definitely makes a difference for students. Receiving the financial aid takes a burden off of a student and allows him or her to focus on their studies, as opposed to having to worry about school and where you are going to get the money to pay for college.”

It seems that the only complaint students have about the lottery scholarship is that it just does not offer enough coverage. According to Jennifer, the scholarship “covered the first two years, when I was attending a community college. However, when I went to university for my junior and senior years, I needed to apply for Pell grants to cover my tuition.”

There have been many conversations on the national level about how to amend the potentially problematic economic aspects of the lottery scholarship system, especially because students who are unable to maintain a GPA requirement often end up dropping out because of financial reasons, which in turn creates financial strain on the universities and public funds used.

The legislative representatives in Arkansas proposed that students who drop out should be held accountable for paying back the state. While this may be viewed as incentive to finish school in some cases, it can also be seen as punishing to the populations it had originally intended to assist.

Enacting such a law for the scholarship funds could create a stigma and prevent many students from accepting the scholarship opportunity; on the other hand, it would also prevent the levels of attrition that currently exist. Getting a lottery scholarship with a mandate of finishing school “or else” might make the scholarship less appealing to students dealing with financial hardship and could actually discourage poorer students from attending college at all.

Others have recommended that institutions pay back some of the investment loss to the state if students drop out. Both this option and the student payback impetus could create unfair burdens on impoverished students, and place too much pressure on institutions already hemorrhaging from massive budget cuts.

There does not seem to be a simple solution to the lottery scholarship debate, and there have been serious attempts to increase retention of all students, not only those with scholarships. Perhaps the state realizes that it is taking a gamble, but in states such as New Mexico with less funding for education, it is unlikely that many students will go to college without some form of assistance. For many states, investing in the futures of potential students who might then stay in state and help their communities succeed could be a gamble worth taking.

Francisco argues that the scholarship “gives lower income students an opportunity to attend college as opposed to going straight into the work force after they graduate high school.

“I would not have been able to afford college if it were not for the lottery scholarship. It would be a great struggle for me to afford to attend a community college; I can’t imagine trying to afford to attend […] UNM; it would be impossible for me.”

Despite criticisms of the lottery scholarship in New Mexico, it may be well worth the state’s investment in students. Studies show that even minimal time in college does improve opportunities for success in life and career, but finishing school and receiving a degree is ideal. Perhaps if the lottery scholarship could be amended to accommodate the student’s first semester of college, it could have an even larger impact on both improving students’ lives and increasing the retention and graduation rates of scholarship recipients.

Author Bio:
Emma Mincks is a contributing writer at Highbrow Magazine.

Photos: Wikipedia Commons; BDViets (Creative Commons).