Want to get paid to graduate college?

In Indiana, it’s possible.

We’ve already emphasized the importance of graduating college in terms of future success and earning potential. Now, states like Indiana have started taking a stake in their students’ futures–by setting benchmarks for completing college credits in order to receive state financial aid.

This recent article from the Hechinger Report highlights new programs in several states that are being implemented to help students stay in school and complete college on time.

Most states give out financial aid to students based on financial need, but there’s no guarantee students will follow through and graduate. In Indiana, for example, only 40% of financial aid recipients will earn their four-year degrees in even six years.

So the state has decided to start making students earn their aid–by requiring that students stay on track with completing college credits in a timely fashion in order to continue to receive financial aid.

Here’s how it works: starting next year, Indiana students will be required not only to start but also to finish 24 credits annually for their state aid to be renewed. If they complete 30 credits or more, they’ll be eligible for an additional $600 a year in aid at public colleges and universities and $1,100 more at private ones  The idea is to put them on track to graduate within four years.

Richard Freeland, the commissioner of higher education in Massachusetts, has begun implementing the idea of giving some grant recipients in his state more money the more courses they take, up to an additional $2,000 a year. He says financial aid shouldn’t expect financial aid for college, but rather need to earn it.

We shouldn’t view financial aid simply as an entitlement. I believe that it is reasonable to think of financial aid to some degree as a social contract between the state and the student. The state is saying we are investing in you because not only is it important to you, but it is important to the state.

The good thing is, students who stay on track for graduation could end up receiving more financial aid than they would have otherwise as a reward for their progress and success. On the flip side, however, students who take a little more time to adjust to college or suffer a setback (such having to take medical leave) could find themselves without aid for the next year.

Other states have implemented similar programs and have seen improvements in graduation rates. Early results from similar programs in Louisiana, Ohio and New Mexico have shown increased credits earned per student and led to a greater percentage of students graduating on time. 

What do you think? Other countries view attending college as a right, not a privilege, and most don’t have requirements for students to stay in school to receive aid.

Should financial aid be tied to a student’s progress in college, or could this make it even harder for some students to graduate on time?