Importance of Entrance Exam Scores for Selecting Grants-in-Aid Recipients

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The Students Grants-in-Aid Program for Poverty Alleviation (SGP-PA) is one of the initiatives of the government to break the poverty cycle by providing support to students who cannot afford tertiary education. It aims to increase the number of higher education graduates among poor households and employ these graduates in high value-added occupations. The selection of grantees is important in achieving the objective of the program. Given the thrust of the program, it is also important that the grantees have a relatively high likelihood of completing their degrees. This Policy Note focuses on the relationship between entrance exam scores and academic performance. It points out that administering admission exams is the best available tool for gauging the ability of students to complete the program.