New Mexico and Louisiana have had problems paying for all the students who qualify. Michigan and Arkansas programs face lawsuits alleging that a disproportionate share of scholarship money goes to white students. Not all education experts see merit in merit-based aid. However, Chester Finn, a senior fellow specializing in education policy for the conservative Manhattan Institute, said the most effective aid would be targeted at poor students who get good grades. Other states that have merit scholarship programs are Alaska, Florida, Kentucky, Mississippi, Missouri, Nevada, South Carolina and Washington.
States considering merit scholarships are Idaho, West Virginia and Hawaii.
A big exception to the national trend is California, which in the fall will expand its state scholarship program to guarantee full tuition to its public colleges for all needy high school graduates with good grades. Texas, in the fall of 1999, also created a need-based program that pays tuition and fees at any state college for Texas high school graduates who are eligible for Pell grants and have completed a recommended curriculum.