Tennessee Independent Colleges and Universities Association. Overview of the Tennessee Education Lottery Scholarship Recipients

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Tennessee Independent Colleges and Universities Association Overview of the 2014-15 Tennessee Education Lottery Scholarship Recipients Fall 2015

Preface The Tennessee Independent Colleges and Universities Association (TICUA) is pleased to present the results of the 2015 study on the impact of the Tennessee Education Lottery Scholarship (TELS) program. The study highlights trends in participation and retention of TELS recipients attending TICUA member campuses. Since the program s inception, students attending TICUA member campuses have benefited from over $500 million in TELS awards. In 2014-15 over 15,000 students attending TICUA member institutions received a TELS award. Of that total, nearly 5,000 students also earned a supplemental award based on academic performance or financial need. Students at TICUA institutions received over $57 million in lottery scholarships. Students from every county in the State received a TELS award to attend a Tennessee private college or university. TICUA welcomes your thoughts and comments on this publication through email at research@ticua.org. TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients i

Table of Contents Preface... i Table of Contents... ii 2014-15 Highlights... iv Overview of the 2014-15 Tennessee Education Lottery Scholarship... 1 Program Overview... 2 2014-15 TELS Program Award Amounts,... 3 Eligibility and Renewal Criteria... 3 Allocation and Distribution... 5 Scholarship Recipients Attending TICUA Member Institutions and Dollars Awarded, 2004-05 to 2014-15... 6 Scholarship Recipients Attending TICUA Member Institutions and Dollars Awarded, 2004-05 to 2014-15 (continued)... 7 Distribution of Scholarship Recipients and In-State Undergraduate Enrollment, Fall 2014... 8 Fall 2014 TICUA Lottery Recipients by Gender... 9 Fall 2014 TICUA Lottery Recipients by Race/Ethnicity... 10 Distribution of TICUA Lottery Recipients by County, Fall 2014... 11 Distribution of TICUA Lottery Recipients by Program Area, Fall 2014... 12 Non-traditional (Age 25 and Older) TICUA Lottery Scholarship Recipients, Fall 2014... 13 TICUA TELS Freshmen as a Percentage of Tennessee First-Time Freshmen... 14 Fall 2014 TICUA TELS Recipients Also Receiving TSAA... 15 Fall 2014 Distribution of First-time Freshman Scholarship Recipients by Qualification... 16 Fall 2014 TICUA Average Hours Attempted... 17 Per Semester by Lottery Recipients... 17 College Participation... 18 Tennessee High School Graduates and TICUA First-Time Freshmen Enrollment... 19 Residence of TICUA First-Time Freshmen... 20 Scholarship Renewal... 22 TICUA Scholarship Renewal by Cohort and Award Type... 23 Fall 2013 to Fall 2014 Scholarship Renewal by Award Type and Postsecondary Sector... 25 Fall 2013 to Fall 2014 Scholarship Renewal by Qualification... 26 TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients ii

Fall 2013 to Fall 2014 Scholarship Renewal by Gender... 27 Fall 2013 to Fall 2014 Scholarship Renewal by Race/Ethnicity... 28 Fall 2013 to Fall 2014 Scholarship Renewal by Race and Lottery Scholarship Program... 29 Fall 2013 to Fall 2014 Scholarship Renewal Rates by ACT & High School GPA... 30 Degree Completion... 31 4-, 5-, and 6-Year Graduation Rates of TICUA Lottery Recipients... 32 4-, 5-, and 6-Year Graduation Rates of Lottery Recipients by Sector... 33 Fall 2009 TICUA First-Time Freshman 6-Year Graduation Rates by Award Type... 34 Fall 2009 TICUA First-Time Freshman 6-Year Graduation Rates by Qualification (HOPE and Aspire Only)... 35 Fall 2009 TICUA First-Time Freshman 6-year Graduation Rates by Race/Ethnicity and Gender... 36 5-Year Graduation Rates of TICUA Lottery Recipients with Scholarship Intact... 37 Fall 2010 TICUA First-Time Freshman 5-Year Graduation Rates with Scholarship Intact by Award Type... 38 Fall 2010 TICUA First-Time Freshman 5-Year Graduation Rates with Scholarship Intact by Qualification... 39 Fall 2010 TICUA First-Time Freshman 5-Year Graduation Rates with Scholarship Intact by Race/Ethnicity and Gender... 40 TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients iii

2014-15 Highlights Allocation and Distribution In 2014-15, over 15,000 students attending Tennessee s private colleges and universities received over $57 million from the Tennessee Education Lottery Scholarship (TELS) program. Of the students receiving a HOPE Scholarship, 23% received the supplemental Aspire Award (based on a student s financial need) and another 13% received the General Assembly Merit Scholarship (based on a student s superior academic performance). Sixty-four percent of all TELS recipients attending TICUA member institutions were female. This is slightly greater than female representation in TICUA member institutions general population (58% female). In 2014-15, the majority (81%) of the TELS recipients attending private colleges and universities were White, while 8% were Black, 3% Hispanic, and 3% Asian. The distribution mirrors the distribution of the general State lottery recipient population (79% Caucasian, 10% African- American). In 2014-15, students from every county in the State received a TELS award to attend a Tennessee private college or university. TICUA institutions continue to enroll proportionately higher levels of TELS recipients when compared to the percentage of in-state undergraduates enrolled in higher education in Tennessee. The percentage of first-time freshmen attending a TICUA member institution on a lottery scholarship has risen 7 percentage points since 2005. The majority (76%) of lottery scholarship recipients at TICUA member institutions qualified for the award with both the required ACT score and high school GPA. College Participation Since the inception of the lottery in 2004, both the number of high school graduates and the number of students enrolling at TICUA member institutions has grown. TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients iv

Scholarship Renewal Of the fall 2011 cohort, 43% of all TELS recipients at private colleges and universities retained their award three years later. Sixty percent of lottery recipients first attending a TICUA member institution in 2013 renewed the scholarship in fall 2014. The small difference in renewal rates after the first year indicates that regardless of the lottery scholarship program, once a student renews the scholarship he/she is likely to maintain scholarship eligibility through graduation. Lottery recipients at TICUA member institutions (64%) have a higher first-to-second year renewal rate than the overall State lottery recipient population (56%). Females were more likely than males to renew the scholarship after one year. In general, renewal rates increase as the recipient s qualifying ACT/GPA increase. Degree Completion The six-year graduation rate for all fall 2009 first-time freshmen lottery recipients at TICUA member institutions is 55%. Of students who first received the lottery scholarship as first-time freshmen at a TICUA institution in fall 2010, 40% graduated from that same institution with the scholarship intact within 5 years. TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients v

Overview of the 2014-15 Tennessee Education Lottery Scholarship Overview of the 2014-15 Tennessee Education Lottery Scholarship TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 1

This report highlights student participation in and renewal of the Tennessee Education Lottery Scholarship (TELS) program with regard to undergraduate students attending a TICUA member institution. This study spotlights data from the past year (academic year 2013-14) and includes data from the previous nine academic years. This report is comprised of four sections. The first section presents an overview of the lottery scholarship program and the participation of students at TICUA member institutions in the program. The remaining three sections look at the lottery scholarship recipients at TICUA member institutions in terms of college participation, scholarship renewal, and degree completion. Program Overview In 2004, the Tennessee General Assembly enacted the TELS program to award scholarships to Tennessee college students. The first students benefiting from this program enrolled in college in the fall of 2004 as first-year and second-year students. This program reached maturity in the 2007-08 academic year with five cohorts of students participating in the program. The inaugural class of first-time freshmen began to graduate in 2008. The State created the program to address several public policy objectives: Improving academic performance in high school through college scholarship incentives Providing financial assistance to students to promote college access Retaining the State s best and brightest high school students by creating an incentive for remaining in the State to attend college Enhancing and promoting economic and community development through workforce development* Based on findings in this report, the lottery program is meeting these objectives. The number of Tennessee residents studying at TICUA member institutions has increased since the inception of the lottery program to more than 50% of enrollment. In addition, more students are attending TICUA member institutions on lottery scholarships. The TELS program initially was comprised of five distinct award types. The table on page 3 outlines, for the academic year 2014-15, scholarship amounts and eligibility criteria for the four award types for which students at TICUA member institutions are eligible. The initial legislation authorized an additional scholarship known as the Wilder-Naifeh Technical Skills Grant, which provides money to students studying at the State s technology centers. * Source: Tennessee Education Lottery Scholarship Annual Report 2015, THEC. Overview of the 2014-15 Tennessee Education Lottery Scholarship TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 2

2014-15 TELS Program Award Amounts, Eligibility and Renewal Criteria Award amount at 4-year institutions* Award amount at 2-year institutions* Tennessee HOPE Scholarship (base award) General Assembly Merit Scholarship (HOPE with merit supplement) Aspire Award (HOPE with need-based supplement) Access Award $6,000 $7,500 $8,250 $4,125 $3,000 $4,500 $5,250 $2,625 Eligibility Requirements Renewal Requirements High School GPA 3.00 3.75 3.00 2.75-2.99 ACT Score or 21 and 29 or 21 and 18-20 Family Adjusted Gross Income College Retention GPA n/a *Award amount is divided equally over fall, spring, and summer semesters. n/a $36,000 or less Traditional Path - Cumulative 2.75 at 24 & 48 hours, cumulative 3.0 at 72, 96, 120 hours Provisional Path - Cumulative 2.75-2.99 at 72, 96, 120 hours with 3.0 prior semester $36,000 or less Cumulative 2.75 at 24 hours allows qualification for HOPE *Source: Tennessee Education Lottery Scholarship Annual Report 2015, THEC. The HOPE Scholarship is a broad-based award for students whose high school GPA is at least 3.0 on a 4.0 scale or whose composite ACT score is at least 21. The General Assembly Merit Scholarship (GAMS) is a merit-based supplement to the base HOPE Scholarship earned by students with at least a 3.75 high school GPA and a composite score of at least 29 on the ACT. The Aspire Award is a need-based supplement to the base HOPE Scholarship granted to students whose families earn less than $36,000/year. The HOPE Access Grant provides a one-year scholarship to students from families earning less than $36,000/year with a high school GPA between 2.75 and 2.99 and a composite ACT score between 18 and 20. A scholarship for non-traditional students (aged 25 or older) was modified during the 2008 legislative session. The modification enabled non-traditional students to become eligible for the lottery scholarship earlier in their academic career by reducing the number of hours non-traditional students needed to complete before becoming eligible for the lottery scholarship program. Overview of the 2014-15 Tennessee Education Lottery Scholarship TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 3

In addition, the TELS program is comprised of several smaller scholarship programs including the Dual Enrollment Grant Foster Child Grant a graduate scholarship for teachers returning to school to be certified in math or science scholarships for veterans of the War on Terror and the conflicts in Iraq and Afghanistan (Helping Heroes Grant) Since these programs do not have the scope of the original programs, they are not included in this analysis. In Spring 2014, the legislature enacted the Tennessee Promise which will provide last dollar scholarships to Tennessee residents matriculated in an Associate degree program. This program was funded by modifying the lottery scholarship amounts to $3,000 for community colleges, $3,500 for Freshmen and Sophomores at four-year institutions, and $4,500 for Juniors and Seniors at four-year institutions. The scholarship amounts go into effect for the fall 2015 semester. The legislature continues to review the program to identify ways in which to bring program expenses more in line with program revenues. Overview of the 2014-15 Tennessee Education Lottery Scholarship TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 4

Allocation and Distribution Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 5

Scholarship Recipients Attending TICUA Member Institutions and Dollars Awarded, 2004-05 to 2014-15 2004-05 2005-06 2006-07 2007-08 Students Dollars Students Dollars Students Dollars Students Dollars HOPE 5,580 $19,841,036 6,278 $23,404,630 GAMS Included in subtotal Included in subtotal 1,277 $5,970,872 1,482 ASPIRE 2,188 $10,787,289 2,355 $11,930,298 Subtotal (HOPE, GAMS, ASPIRE) 5,291 $16,641,422 7,082 $25,214,593 9,045 $36,599,197 10,115 $42,565,779 HOPE Access Grant 12 $21,000 25 $54,000 15 $33,125 35 $89,375 HOPE Non Traditional HOPE Foster Care 0 $0 2 $4,564 5 $12,966 Dual Enrollment 377 $157,810 582 $272,700 979 $419,682 Math and Science Teachers 2 $4,000 Helping Heroes Rural Health Loan Forgiveness Total 5,303 $16,662,422 7,484 $25,426,403 9,644 $36,909,586 11,136 $43,091,802 2008-09 2009-10 2010-11 2011-12 Students Dollars Students Dollars Students Dollars Students Dollars HOPE 7,009 $26,026,750 7,311 $27,174,803 7,447 $27,780,334 7,552 $28,500,967 GAMS 1,616 $7,918,513 1,707 $8,310,375 1,750 $8,539,689 1,830 $9,054,636 ASPIRE 2,671 $13,486,096 3,110 $15,805,321 3,406 $17,248,962 3,413 $17,666,641 Subtotal (HOPE, GAMS, ASPIRE) 11,296 $47,431,359 12,128 $51,290,499 12,603 $53,568,985 12,795 $55,222,244 HOPE Access Grant 44 $110,687 74 $180,125 46 $109,148 56 $128,629 HOPE Non Traditional 244 $709,000 464 $1,394,993 613 $1,958,833 766 $2,530,000 HOPE Foster Care 2 $5,526 0 $0 4 $22,260 8 $48,860 Dual Enrollment 1,179 $522,595 1,615 $666,292 1,632 $672,223 1,354 $661,519 Math and Science Teachers 1 $2,000 3 $6,000 0 $0 0 $0 Helping Heroes 7 $9,500 23 $35,000 34 $46,500 55 $89,000 Rural Health Loan Forgiveness 21 $237,962 35 $374,132 34 $381,620 27 $298,777 Total 12,794 $49,028,629 14,342 $53,947,041 14,966 $56,759,569 15,061 $58,979,030 Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 6

Scholarship Recipients Attending TICUA Member Institutions and Dollars Awarded, 2004-05 to 2014-15 (continued) 2012-13 2013-14 2014-15 Students Dollars Students Dollars Students Dollars HOPE 7,442 $28,090,805 7,592 $28,578,666 7,573 $28,642,776 GAMS 1,904 $9,362,053 1,920 $9,333,651 1,897 $9,340,875 ASPIRE 3,432 $17,532,116 3,217 $16,404,561 2,991 $15,474,173 Subtotal (HOPE, GAMS, ASPIRE) 12,778 $55,084,974 12,729 $54,316,878 12,461 $53,457,824 HOPE Access Grant 58 $135,782 53 $131,312 44 $106,700 HOPE Non Traditional 848 $2,706,482 795 $2,857,696 632 $2,170,500 HOPE Foster Care 7 $37,060 8 $49,676 8 $53,462 Dual Enrollment 1,542 $771,075 1708 $904,110 1725 $908,265 Math and Science Teachers 0 $0 0 $0 0 $0 Helping Heroes 63 $104,000 65 $113,250 66 $98,500 Rural Health Loan Forgiveness 12 $117,975 TN STEP UP 0 $0 0 $0 10 $39,000 Total 15,308 $58,957,349 15,358 $58,372,922 14,946 $56,834,251 Highlights Source: Tennessee Student Assistance Corporation (TSAC) year-end reports The number of scholarship recipients attending a TICUA member institution in 2014-2015 has nearly tripled since the inception of the lottery program in 2004. Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 7

Distribution of Scholarship Recipients and In-State Undergraduate Enrollment, Fall 2014 Headcount Percent Award Type TBR Universities TBR Community Colleges Sector UT Campuses TICUA Member Institutions Total HOPE 16,018 8,831 12,702 7,287 44,838 GAMS 1,634 80 2,926 1,493 6,133 ASPIRE 6,841 3,832 4,128 2,651 17,452 ACCESS 107 137 26 38 308 Total TELS 24,600 12,880 19,782 11,469 68,731 Total In-State Undergraduate 64,957 83,622 34,611 31,892 215,082 Enrollment HOPE 36% 20% 28% 16% 100% GAMS 27% 1% 48% 24% 100% ASPIRE 39% 22% 24% 15% 100% ACCESS 35% 44% 8% 12% 100% Total TELS 36% 19% 29% 17% 100% Total In-State Undergraduate Enrollment Data from Tennessee Higher Education Commission and may differ slightly from TICUA data Highlights 17% of all lottery recipients attend a TICUA member institution 24% of all GAMS recipients attend a TICUA member institution 15% of all ASPIRE recipients attend a TICUA member institution 30% 39% 16% 15% 100% TICUA member institutions enroll a greater percentage of students (24%) receiving the merit supplement (GAMS) than the share of total lottery recipients (17%) they enroll. TICUA member institutions enroll a greater percentage of lottery recipients (17%) than their share of in-state undergraduate students (15%). Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 8

Fall 2014 TICUA Lottery Recipients by Gender Award Type Gender Number Percentage Total HOPE ASPIRE GAMS ACCESS Female 7,860 64% Male 4,474 36% Female 4,970 64% Male 2,772 36% Female 1,824 58% Male 903 42% Female 1,049 57% Male 781 43% Female 17 49% Male 18 51% Highlight In fall 2014, female recipients constituted 64% of lottery recipients attending TICUA member institutions. This is slightly greater than female representation in TICUA member institutions general population (58% female). Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 9

Fall 2014 TICUA Lottery Recipients by Race/Ethnicity Award Type Race/Ethnicity Number Percentage Highlights Total HOPE ASPIRE GAMS ACCESS Allocation and Distribution White, not Hispanic 9,962 81% Black or African-American 1,018 8% Unknown/Unreported 410 3% Asian 338 3% Hispanic or Latino 358 3% Other 247 2% White, not Hispanic 6,511 84% Black or African-American 520 7% Unknown/Unreported 251 3% Asian 145 2% Hispanic or Latino 179 2% Other 135 2% White, not Hispanic 1,886 69% Black or African-American 446 16% Unknown/Unreported 103 4% Asian 91 3% Hispanic or Latino 132 5% Other 69 3% White, not Hispanic 1,549 85% Black or African-American 35 2% Unknown/Unreported 56 3% Asian 102 6% Hispanic or Latino 46 3% Other 42 2% White, not Hispanic 16 46% Black or African-American 17 49% Unknown/Unreported 0% Asian 0% Hispanic or Latino 0% Other 3% The racial composition of lottery recipients at TICUA member institutions has remained stable over the years. The lottery recipient distribution mirrors the distribution of the general State lottery recipient population (79% Caucasian, 10% African-American).* The racial composition of the general undergraduate population at TICUA member institutions (67% white, 16% African-American) is more diverse than the racial composition of lottery recipients. *Source: Tennessee Education Lottery Scholarship Annual Report 2015, THEC. TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 10

Distribution of TICUA Lottery Recipients by County, Fall 2014 Total TICUA Lottery Recipient Headcount by County Total TICUA Lottery Recipient Headcount by County and Award type Highlights Tennessee s independent colleges and universities enroll lottery recipients from every county in the State The counties with the most lottery recipients attending a Tennessee independent college or university are: Shelby (1,425) Davidson (1,167) Williamson (864) Knox (808) Hamilton (564) The distribution of lottery recipients closely resembles the population distribution of the State. Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 11

Distribution of TICUA Lottery Recipients by Program Area, Fall 2014 Top Program Areas Number Percentage Health Professions and Related Programs 2,144 18% Business, Management, Marketing, and Related Support Services 1,512 13% Education 1,049 9% Biological and Biomedical Sciences 952 8% Visual and Performing Arts 803 7% Psychology 571 5% Parks, Recreation, Leisure, and Fitness Studies 416 4% Communication, Journalism, and Related Programs 334 3% English Language and Literature/Letters 324 3% Highlight The most popular majors of lottery recipients at TICUA member institutions are Health Professions (18%), Business (13%), and Education (9%). This distribution mirrors the choice of majors in the general student population at TICUA member institutions. Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 12

Non-traditional (Age 25 and Older) TICUA Lottery Scholarship Recipients, Fall 2014 Gender Percentage Female 80% Male 20% Race/Ethnicity Percentage White, not Hispanic 63% Black or African-American 28% Unknown 5% Other 4% Age Range Percentage Highlights Allocation and Distribution 25-29 13% 30-34 24% 35-39 22% 40-44 18% 45-49 14% 50-54 5% 55-59 3% 60+ 1% 80% of non-traditional recipients attending a TICUA member institution on a lottery scholarship are female. 63% of non-traditional recipients attending a TICUA member institution on a lottery scholarship are White, not Hispanic. The ages of non-traditional recipients vary, but over half are age 39 or below. TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 13

TICUA TELS Freshmen as a Percentage of Tennessee First-Time Freshmen Term TN FTF On TELS Percentage Fall 2005 4,360 3,222 74% Fall 2006 4,596 3,379 74% Fall 2007 4,981 3,770 76% Fall 2008 5,114 3,911 76% Fall 2009 5,443 4,135 76% Fall 2010 5,425 4,153 77% Fall 2011 5,366 4,165 78% Fall 2012 4,996 3,969 79% Fall 2013 5,087 4,053 80% Fall 2014 4,680 3,768 81% Highlight The percentage of first-time freshmen attending a TICUA member institution on a lottery scholarship has risen 7 percentage points since 2005. Since a greater percentage of students are attending TICUA member institutions on a lottery scholarship this suggests that the scholarship goal of encouraging Tennessee s best and brightest students to remain in State for higher education is being met. Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 14

Fall 2014 TICUA TELS Recipients Also Receiving TSAA Scholarship Type Number Number Receiving TSAA Percentage Total 11,825 2,132 18% HOPE 7,650 434 6% Aspire 2,655 1,645 62% GAMS 1,485 28 2% Access 35 25 71% Highlight Only 21% of students on the lottery scholarship also receive the need-based Tennessee Student Assistance Award (TSAA). For those students who receive a need-based Aspire Award, the percentage who also receive TSAA increases to two thirds. Tennessee Student Assistance Award (TSAA) The TSAA provides non-repayable financial assistance to financially-needy undergraduate students ($4,000 to students at 4-year private institutions) who are residents of Tennessee. The TSAA is awarded by application on a first-come, first-serve basis. Once all the appropriated money is awarded, no additional scholarships are awarded. In contrast, the TELS program awards scholarships to all eligible students. There were approximately 118,000 public and private college and university students in 2014-15 who were eligible for TSAA, but did not receive an award because the program is underfunded. Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 15

Fall 2014 Distribution of First-time Freshman Scholarship Recipients by Qualification Scholarship Type Both GPA and ACT GPA Only ACT Only Total HOPE and ASPIRE 76% 17% 7% 100% HOPE 80% 14% 6% 100% ASPIRE 65% 26% 8% 100% Gender Both GPA and ACT GPA Only ACT Only Total Female 79% 17% 4% 100% Male 72% 17% 11% 100% Race Both GPA and ACT GPA Only ACT Only Total White, not Hispanic 79% 14% 7% 100% Black or African-American 48% 41% 10% 100% Asian 90% 4% 6% 100% Hispanic or Latino 80% 13% 7% 100% Other 76% 15% 9% 100% Unknown/Unreported 68% 28% 4% 100% *Excludes GAMS recipients since GAMS eligibility requires both a 29 and greater ACT score and a 3.75 or greater high school GPA. Also excludes Vanderbilt University students. Highlight The majority of lottery recipients at TICUA member institutions qualified for the lottery scholarship with both the required GPA and ACT scores. The number of students who qualified by their ACT score only is lowest (8%). Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 16

Fall 2014 TICUA Average Hours Attempted Per Semester by Lottery Recipients Scholarship Type Freshmen Sophomore Junior Senior HOPE 15.2 15.3 15.5 15.0 GAMS 15.6 15.7 15.7 15.2 ASPIRE 15.1 15.5 15.6 15.2 *Based on fall 2014 award type Highlights The average attempted hours by lottery students was at least 15 hours per semester, keeping them on track to earn 120 credit hours in 4 years. Students receiving the GAMS supplement attempted more hours per semester during their freshmen, sophomore, and junior years than students receiving other lottery scholarship recipients. Allocation and Distribution TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 17

College Participation College Participation TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 18

Tennessee High School Graduates and TICUA First-Time Freshmen Enrollment 80,000 6000 Tennessee High School Graduates 70,000 60,000 50,000 40,000 30,000 20,000 10,000 5000 4000 3000 2000 1000 TICUA First-Time Freshmen from Tennessee 0 2001-02 Fall 2002 2003-04 Fall 2004 2005-06 Fall 2006 2007-08 Fall 2008 2009-10* Fall 2010 2011-12* Fall 2012 0 2013-14* Fall 2014 Tennessee High School Graduates TICUA First-Time Freshmen from Tennessee Highlights Since the inception of the lottery in 2004, both the number of high school graduates # and the number of students enrolling at TICUA member institutions has grown. The number of students enrolling in TICUA member institutions has grown at a greater rate than the number of Tennessee high school graduates, offering support that the program goals of retaining the best and brightest Tennessee students and increasing college access are being met. # Source: Western Interstate Commission on Higher Education, 2012 and US Department of Education, National Center for Education Statistics *Estimated data ** IPEDS Residence and Migration Survey is conducted biennially. Data above are most recent available. College Participation TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 19

Residence of TICUA First-Time Freshmen 70% 60% 50% 40% 30% 20% 10% 0% Fall 1998 Fall 2000 Fall 2002 Fall 2004 Fall 2006 Fall 2008 Fall 2010 Fall 2012 Fall 2014 Sum of % In-State Sum of % Out of State Highlight For the first years of the lottery scholarship, the percentage of Tennesseans entering TICUA member institutions increased to the point that Tennesseans made up about 50% of the enrollment. In the last three years, this trend has reversed, but the percentage of in-state students is still greater than at the inception of the program. #Source: US Department of Education, National Center for Education Statistics ** IPEDS Residence and Migration Survey is conducted biennially. Data above are most recent available. College Participation TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 20

College Participation TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 21

Scholarship Renewal Scholarship Renewal TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 22

TICUA Scholarship Renewal by Cohort and Award Type Highlights Cohort Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Fall 2012 Fall 2013 Award Type Sixty percent of lottery recipients first attending a TICUA member institution in fall 2013 renewed the scholarship in fall 2014. This renewal is slightly higher than previous first-to-second year rates at TICUA member institutions. Scholarship Renewal Number of Students in Cohort HOPE 1,958 55% 46% 43% GAMS 371 87% 80% 75% ASPIRE 834 49% 40% 38% Total 3,163 57% 48% 45% HOPE 2,230 54% 48% 43% GAMS 419 88% 81% 76% ASPIRE 876 45% 39% 35% Total 3,525 56% 50% 45% HOPE 2,375 55% 49% 43% GAMS 417 84% 79% 74% ASPIRE 957 44% 38% 33% Total 3,749 55% 50% 44% HOPE 2,432 54% 49% 42% GAMS 460 84% 80% 73% ASPIRE 1,136 45% 36% 32% Total 4,028 55% 49% 43% HOPE 2,466 56% 49% 43% GAMS 455 84% 77% 73% ASPIRE 1,169 43% 39% 34% Total 4,090 56% 49% 44% HOPE 2,511 55% 48% 42% GAMS 498 86% 81% 73% ASPIRE 1,137 47% 38% 33% Total 4,146 56% 50% 43% HOPE 2,327 61% 53% GAMS 495 86% 81% ASPIRE 1,111 46% 39% Total 3,933 60% 52% HOPE 2,467 60% GAMS 471 86% ASPIRE 1,075 49% Total 4,013 60% 1-Year Renewal Rate 2-Year Renewal Rate 3-Year Renewal Rate TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 23

Scholarship renewal rates by program vary with the highest first-to-second year renewal rates for GAMS recipients 86% for students entering in fall 2013 followed by HOPE recipients and then ASPIRE recipients. The small difference in renewal rates after the first year indicates that, regardless of the lottery program, once a student renews the lottery program he/she is likely to maintain scholarship eligibility through graduation. Scholarship Renewal TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 24

Fall 2013 to Fall 2014 Scholarship Renewal by Award Type and Postsecondary Sector Highlights System HOPE GAMS ASPIRE ACCESS Total TBR Universities 58% 91% 45% 16% 55% TBR Community Colleges 52% 83% 41% 23% 48% UT Campuses 60% 91% 50% 8% 61% TICUA Institutions 65% 92% 53% 19% 64% Total 58% 91% 46% 18% 56% *Source: Tennessee Higher Education Commission Student Information System and may differ from TICUA data Lottery recipients at TICUA member institutions (64%) have a higher first-to-second year renewal rate than the total lottery recipient population (56%). The first-to-second year renewal rates by program at TICUA member institutions are higher than the total population for each of the programs (HOPE, GAMS, ASPIRE, and ACCESS). Scholarship Renewal TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 25

Fall 2013 to Fall 2014 Scholarship Renewal by Qualification Scholarship Type Both GPA and ACT GPA Only ACT Only HOPE and ASPIRE 66% 39% 20% HOPE 68% 43% 21% ASPIRE 60% 35% 17% Highlight *Excludes GAMS recipients since GAMS eligibility requires both a 29 and greater ACT score and a 3.75 or greater high school GPA. Lottery recipients, regardless of the scholarship program, who qualified by both high school GPA and ACT score were most likely to renew the scholarship the following year. Those that qualified by ACT score alone, were least likely to renew the scholarship for a second year. Scholarship Renewal TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 26

Fall 2013 to Fall 2014 Scholarship Renewal by Gender Gender Fall 2013 FTF Cohort Renewed Fall 2014 Percentage Female 2,306 1,477 64% Male 1,561 822 53% Total 3,867 2,299 59% *excludes Vanderbilt University Students Gender HOPE GAMS ASPIRE Total Fall 2013 TELS First-Time Freshman Cohort Female 1,435 208 663 2,306 Male 1,011 157 393 1,561 Total 2,446 365 1,056 3,867 Female 956 182 339 1,477 Renewed Fall 2014 Male 507 138 177 822 Total 1,463 320 516 2,299 Female 67% 88% 51% 64% Renewal Rate Male 50% 88% 45% 53% Total 60% 88% 49% 59% *excludes Vanderbilt University students Highlights Females were more likely than males to renew the scholarship after one year. This pattern holds true regardless of the lottery scholarship program. Scholarship Renewal TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 27

Fall 2013 to Fall 2014 Scholarship Renewal by Race/Ethnicity Race/Ethnicity Fall 2013 FTF Cohort Renewed Fall 2014 Percentage White, not Hispanic 3,070 1,887 61% Black or African-American 389 172 44% Unknown/Unreported 121 68 56% Hispanic or Latino 114 71 62% Asian 94 63 67% Two or more races 65 30 46% Other 14 8 57% Total 3,867 2,299 59% *excludes Vanderbilt University students Highlights Asian recipients, recipients identified as Hispanic or Latino, and White, not-hispanic recipients had a higher scholarship renewal rate than the general TICUA lottery recipient population (59%). African-American recipients and recipients of Two or more races had a lower scholarship renewal rate than the general TICUA lottery recipient population (59%). Scholarship Renewal TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 28

Fall 2013 to Fall 2014 Scholarship Renewal by Race and Lottery Scholarship Program Race/Ethnicity HOPE GAMS ASPIRE Total Fall 2013 TELS First-Time Freshman Cohort Black or African-American 161 4 224 389 White, not Hispanic 2,058 316 696 3,070 Other 227 45 136 408 Total 2,446 365 1,056 3,867 Renewed Fall 2014 Black or African-American 82 2 88 172 White, not Hispanic 1,252 280 355 1,887 Other 129 38 73 240 Total 1,463 320 516 2,299 Black or African-American 51 % 50 % 39 % 44 % Renewal Rate White, not Hispanic 61 % 89 % 51 % 61 % Other 57 % 84 % 54 % 59 % Total 60 % 88 % 49 % 59 % *excludes Vanderbilt University students Highlights For the HOPE and ASPIRE programs, White recipients were more likely than Black recipients to renew the scholarship in the second year. The racial diversity in the GAMS program is too low to draw any conclusions. Scholarship Renewal TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 29

Fall 2013 to Fall 2014 Scholarship Renewal Rates by ACT & High School GPA High School GPA GPA Range ACT Composite Score 29 or higher 25-28 21-24 17-20 16 or less Total 3.75 or above 88% 81% 72% 53% 100% 79% 3.50-3.74 78% 70% 65% 51% N/A 65% 3.25-3.49 65% 52% 43% 40% 14% 44% 3.00-3.24 38% 48% 37% 27% 22% 34% 2.75-2.99 N/A 27% 16% 19% 2.50-2.74 25% 25% 26% 26% 2.25-2.49 0% 0% 16% 13% 2.24 or less N/A 0% 20% 18% Total 84% 70% 52% 41% 22% 60% *Includes only students who have both an ACT and high school GPA reported; excludes Vanderbilt University students. For this reason, the total renewal rate differs slightly from the tables above. Highlights In general, renewal rates increase as the recipient s qualifying ACT Score and high school GPA increase. Lottery recipients with higher ACT scores and high school GPAs generally have higher renewal rates. The highest renewal rate (88%) is for students whose high school GPA was 3.75 or above and ACT score was 29 or above. Scholarship Renewal TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 30

Degree Completion Degree Completion TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 31

4-, 5-, and 6-Year Graduation Rates of TICUA Lottery Recipients TELS FTF Cohort 4-Year Graduation Rate 5-Year Graduation Rate 6-Year Graduation Rate Fall 2005 43 % 58 % 60 % Fall 2006 44 % 58 % 61 % Fall 2007 43 % 57 % 60 % Fall 2008 42 % 56 % 58 % Fall 2009 40 % 53 % 55 % Fall 2010 41 % 55 % Fall 2011 42 % *Associate and Bachelor degrees awarded through spring 2015 60% 61% 60% 58% 58% 57% 58% 56% 55% 53% 55% 43% 44% 43% 42% 40% 41% 42% Highlights Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Degree Completion 4-yr Graduation Rate 5-yr Graduation Rate 6-yr Graduation Rate *Associate and Bachelor degrees awarded through spring 2015 After remaining relatively stable, the 4-, 5-, and 6-year graduation rates have decreased slightly in recent years. For each entering cohort, more than 40% of lottery recipients earn a degree in 4 years. At least 58% of the entering cohort in 2005, 2006, 2007 and 2008 earned a degree within 6 years. TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 32

4-, 5-, and 6-Year Graduation Rates of Lottery Recipients by Sector TELS FTF Cohort 2004 2005 2006 2007 2008 2009 Degree Completion 4-Year Graduation Rate 5-Year Graduation Rate ON TELS 5-Year Graduation Rate 6-Year Graduation Rate System TBR Universities 19% 28% 43% 53% TBR Community Colleges 27% 22% 35% 39% UT Campuses 26% 36% 56% 65% Private Colleges # 47% 42% 63% 68% Total 27% 31% 48% 55% TBR Universities 21% 33% 45% 55% TBR Community Colleges 32% 25% 40% 45% UT Campuses 30% 42% 59% 69% Private Colleges # 47% 46% 66% 71% Total 30% 36% 52% 60% TBR Universities 20% 32% 45% 55% TBR Community Colleges 29% 24% 38% 42% UT Campuses 30% 43% 60% 70% Private Colleges # 46% 46% 64% 70% Total 29% 35% 50% 59% TBR Universities 21% 34% 46% 56% TBR Community Colleges 28% 23% 38% 43% UT Campuses 30% 42% 59% 69% Private Colleges # 39% 40% 57% 62% Total 28% 35% 50% 58% TBR Universities 21% 33% 46% 56% TBR Community Colleges 31% 27% 41% 45% UT Campuses 30% 43% 60% 69% Private Colleges # 41% 43% 61% 64% Total 29% 36% 51% 58% TBR Universities 22% 27% 46% TBR Community Colleges 31% 24% 39% UT Campuses 31% 36% 60% Private Colleges # 42% 41% 61% Total 29% 31% 50% TBR Universities 22% TBR Community Colleges 28% UT Campuses 33% Private Colleges# 39% Total 23% *Source: Tennessee Higher Education Commission Student Information System and may differ from TICUA data # The category Private Colleges includes all private institutions which are lottery eligible and is broader than TICUA member 2010 institutions. Highlights Lottery recipients at private colleges are more likely to graduate in 4 years than recipients at other types of institutions. Lottery recipients at private colleges have higher 5-year and 6-year graduation rates than recipients at TBR Universities and TBR Community Colleges. Lottery recipients at private colleges are more likely to graduate within five years with their scholarship eligibility intact than recipients at community colleges and public 4-year institutions. TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 33

Fall 2009 TICUA First-Time Freshman 6-Year Graduation Rates by Award Type Award Type Fall 2009 FTF Cohort Graduated Graduation Rate HOPE 2,432 1,346 55 % GAMS 460 386 84 % ASPIRE 1,136 499 44 % ACCESS 49 10 20 % Total 4,077 2,241 55 % *Associate and Bachelor degrees awarded through spring 2014 Highlights The 6-year graduation rate for the fall 2009 Lottery recipients at TICUA member institutions is 55%. GAMS recipients have the highest 6-year graduation rate at 84%. ACCESS recipients have the lowest 6-year graduation rate at 20%. The 6-year graduation rate for all undergraduate students at TICUA member institutions is 60%. # # The 60% graduation rate is for the fall 2008 entering cohort, as this is the most recent year for which complete data is available. Degree Completion TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 34

Fall 2009 TICUA First-Time Freshman 6-Year Graduation Rates by Qualification (HOPE and Aspire Only) Qualifier Fall 2008 FTF Cohort Graduated Graduation Rate Both GPA and ACT 2,797 1,705 61% GPA Only 633 230 36% ACT Only 328 84 26% Total 3,758 2,019 54% *Associate and Bachelor degrees awarded through spring 2015 **Excludes Vanderbilt University students Highlights Lottery recipients who qualified by both high school GPA and ACT score were most likely to graduate within 6 years. Lottery recipients who qualified by ACT only were least likely to graduate within 6 years. Degree Completion TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 35

Fall 2009 TICUA First-Time Freshman 6-year Graduation Rates by Race/Ethnicity and Gender Race/Ethnicity Fall 2008 FTF Cohort Graduated Graduation Rate Asian 55 39 71% Black or African-American 392 150 38% Hispanic or Latino 66 34 52% Other 42 22 52% Unknown/Unreported 161 77 48% White, not Hispanic 3,161 1,740 55% Total 3,877 2,062 53% * Excludes Vanderbilt University students * Degrees awarded through spring 2015 Gender Fall 2008 FTF Cohort Graduated Graduation Rate Female 2,334 1,303 56% Male 1,543 759 49% Total 3,877 2,062 53% * Excludes Vanderbilt University students * Degrees awarded through spring 2015 Highlights Asian scholarship recipients (71%) had the greatest graduation rate. African-American scholarship recipients (38%) had the lowest graduation rate. Female scholarship recipients (56%) had a greater graduation rate than male recipients (49%). Degree Completion TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 36

5-Year Graduation Rates of TICUA Lottery Recipients with Scholarship Intact TELS FTF Cohort 5-Year Graduation Rate Fall 2005 42% Fall 2006 43% Fall 2007 42% Fall 2008 41% Fall 2009 38% Fall 2010 40% Highlight * Excludes Vanderbilt University students The 5-year graduation rates of TICUA first-time freshmen with the scholarship intact have been relatively stable. Degree Completion TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 37

Fall 2010 TICUA First-Time Freshman 5-Year Graduation Rates with Scholarship Intact by Award Type Award Type Fall 2010 FTF Cohort Graduated Graduation Rate HOPE 2,429 976 40% GAMS 339 249 73% ASPIRE 1,123 335 30% Total 3,891 1,560 40% * Excludes Vanderbilt University students Highlights Of students who first received the lottery scholarship as first-time freshmen in fall 2010, 40% graduated with the scholarship intact within five years. Students who received the GAMS scholarship (73%) were more likely to graduate within five years with the scholarship intact than other students. Degree Completion TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 38

Fall 2010 TICUA First-Time Freshman 5-Year Graduation Rates with Scholarship Intact by Qualification Qualifier Fall 2009 FTF Cohort Graduated Graduation Rate Both GPA and ACT 2,878 1,369 48% GPA Only 648 142 22% ACT Only 311 37 12% Total 3,837 1,548 40% * HOPE and Aspire students ONLY. Excludes Vanderbilt University students Highlight TICUA Lottery Recipients who qualified by both high school GPA and ACT score were most likely to graduate with their scholarship intact. Degree Completion TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 39

Fall 2010 TICUA First-Time Freshman 5-Year Graduation Rates with Scholarship Intact by Race/Ethnicity and Gender Race/Ethnicity Fall 2009 FTF Cohort Graduated Graduation Rate Asian 92 43 47% Black or African-American 391 76 19% Hispanic or Latino 78 23 29% Other 27 9 33% Unknown/Unreported 119 56 47% White, not Hispanic 3,184 1,353 42% Total 3,891 1,560 40% * Excludes Vanderbilt University students Gender Fall 2009 FTF Cohort Graduated Graduation Rate Female 2,344 993 42% Male 1,547 567 37% Total 3,891 1,560 40% * Excludes Vanderbilt University students Highlights Asian (47%) and White, not Hispanic (42%) lottery recipients were more likely to graduate within 5 years with their scholarships intact than other groups. Black (19%) and Hispanic or Latino (29%) lottery recipients were less likely to graduate within 5 years with their scholarships intact than other groups. Female lottery recipients were more likely than their male counterparts to graduate within 5 years with their scholarship intact. Degree Completion TICUA Overview of 2014-2015 Tennessee Education Lottery Scholarship Recipients 40

TICUA Members TICUA Staff Aquinas College Baptist College of Health Sciences Belmont University Bethel University Bryan College Carson-Newman University Christian Brothers University Cumberland University Fisk University Freed-Hardeman University Johnson University King University Lane College Lee University LeMoyne-Owen College Lincoln Memorial University Lipscomb University Martin Methodist College Maryville College Meharry Medical College Memphis College of Art Middle Tennessee School of Anesthesia Milligan College Rhodes College Sewanee: The University of the South Southern Adventist University Southern College of Optometry Tennessee Wesleyan College Trevecca Nazarene University Tusculum College Union University Vanderbilt University Watkins College of Art, Design & Film Welch College Dr. Claude O. Pressnell, Jr. President Dr. Diane Berty Vice President Laura Cornick Director of Member Services C. Gregg Conroy Executive Director TICUA Benefit Consortium Amy Heckman Director of Technology and Data Systems Dr. Patrick L. Meldrim Vice President Jason Powell Director Coalition of Healthy and Safe Campus Communities (CHASCo) Darlene Thornton Administrative Coordinator TICUA Benefit Consortium

1031 17 th Avenue, South Nashville, TN 37212-2201 Telephone 615-242-6400 Fax 615-242-8033 www.ticua.org Fall 2015 Tennessee Independent Colleges and Universities Association