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In the spring of 1988, Cleveland business leaders, in a bold bid to motivate the city''s public school students to pursue higher education, undertake an ambitious scholarship program. Students, under the scholarship-in-escrow plan, would receive funds--held in an account in their name--for every grade of C or above they earned. The funds would help finance college education. Both the city''s new school superintendent and its business community hold high hopes for this high-profile effort. This policy design case is meant to stimulate discussion and analysis of the Cleveland scholarship program and, particularly, its long-term prospects--including potential flaws. The case provides background information about achievement levels of Cleveland public school students, as well as views of teachers, administrators and community leaders as to why they believe scholarship-in-escrow can succeed. Part B describes unexpected difficulties which arise in the program''s implementation and its eventual demise. Part C takes a look at an alternate approach undertaken by a nearby community.