Investing in College Readiness: Societal Benefits and Costs of the El Dorado College Promise Program

A growing volume of research shows college promise programs increase the likelihood that students enroll in and complete college. Place-based promise programs provide a guaranteed college scholarship for students who attend a specified school district. We examine the societal benefits and costs of a place-based scholarship program in rural Arkansas, the El Dorado Promise. Our cost framework treats tuition payments as a cash transfer that shifts the cost burden of higher education rather than causing new societal costs. Findings show the program provides societal benefits equal to $4.60 for each dollar invested. A break-even analysis shows the program produces benefits to society that exceed costs within an 81% confidence interval of effects, providing relatively high likelihood of positive returns.