"Do you know a Kentucky high school student who could use an incentive to stay on the college-prep track? How about this: he or she may receive a Kentucky Educational Excellence Scholarship (KEES) by exceeding a minimum threshold for grades and coursework. Further, if his or her composite ACT score also exceeds a minimum level, a bonus is added to the total award. KEES awards can be used at public, private and proprietary colleges throughout the state; for two-year and four-year degree programs; and for studies in specific fields at out-of-state colleges listed as part of the "Academic Common Market," if those majors are not available at public institutions in Kentucky. The awards are earned over four years of high school and are renewable for four years of undergraduate study, provided that the student's college grade point average remains at or above a specified level. One nice aspect of this program is that the higher one's high school grades and ACT, the larger the KEES award. Some states' programs offer scholarships purely on the basis of standardized testing and others purely on the basis of grades; the KEES approach is a thoughtful hybrid.
This merit-based program was established in 1998, and funded entirely with proceeds from the Kentucky Lottery as a means of boosting high school achievement levels and broadening access to higher education for Kentucky residents. An additional program goal was to stem the tide of talented students who were leaving the state to pursue their education and perhaps staying elsewhere when they graduate and become contributing members of the workforce.
Since the program's inception, nearly $385 million has been disbursed. Figures published in a recent Kentucky Higher Education Assistance Authority (KHEAA) study, 2006 Kentucky Educational Excellence Scholarship Data Report, show that the number of scholarships earned annually climbed for several years after the program's inception, and has remained relatively steady since 2003. The number of eligible students has increased 24 percent since the program's start, and the actual number of students utilizing the awards has also increased, although to a lesser degree. Both signs indicate that the program has had some effect.
The KEES program is only one of several incentive programs available to Kentucky residents. A milestone recently reached in a separate program, the Kentucky Education Savings Plan Trust (KESPT), suggests that families are responding to an investment incentive. KESPT is what's commonly known as a "529 plan," named for the section of the IRS tax code that specifies its tax advantages; the Trust now has over 10,000 families enrolled, for a combined $100 million under management. The 529 status allows earnings on invested dollars to accrue on a tax-deferred basis; then, when withdrawals are made for qualified higher education expenditures, the amount withdrawn is tax-free. Think of it as a Roth IRA for higher education purposes. Withdrawals from a KESPT account can be used for college expenses anywhere; unlike KEES awards, they are not restricted to Kentucky institutions. If an account is established for a child who ultimately decides not to pursue higher education, the funds can be transferred to a sibling or other close family member for his or her education.
Some readers may have previously invested in a third program, Kentucky Affordable Prepaid Tuition (KAPT), which provided an incentive in the form of a guarantee that your prepayment of today's public college tuition rate would protect your not-yet-college-age child from future tuition increases. Unfortunately, Kentucky's public college tuition increases outpaced investment earnings for the program, so new enrollment was suspended in 2004. Rest assured, though, that the state is honoring contracts signed previously. The program's finances are reviewed annually and it is possible that KAPT will one day re-open for enrollment.
While financial incentives are welcome, especially given today's college costs, paying the bills cannot guarantee that a student will succeed in college. KHEAA officials join me in encouraging students to choose the most challenging courses they are capable of handling, rather than looking for the course that leads to the easiest "A." There is no substitute for a rigorous high school curriculum and dedication to one's studies; while it may be relatively easy to gain admission to some colleges, it is not as easy to stay in, nor is it as easy to maintain the grade point average needed for scholarship renewal. We hope students will not only earn their KEES awards, but perform well enough once in college to maintain them in full.
Jane S. Shropshire guides students and families through the college search process, drawing on over a decade of college admission experience. Send questions or suggestions to JShrop@att.net or visit Shropshire Educational Consulting, LLC at www.ShropEd.net.