By Katherine Stanley - Tico Times Staff

Leaders of President Oscar Arias’ administration yesterday announced one element of their plan of attack on the country’s dismal high-school dropout rates: a scholarship program for low-income students that offers financial rewards to those who graduate.

The newly formed Ministry of Housing and the Fight against Poverty, headed by Fernando Zumbado, will work with the Public Education Ministry to implement a pilot program and gradually expand the scholarships until all eligible students are served, at an estimated cost of ¢27 billion (approximately $53.5 million) per year. The details of the program will be finalized within the next two weeks, and the pilot program could begin as soon as July, Zumbado explained after presenting the plans during Arias’ weekly Cabinet meeting yesterday.

Public Education Minister Leonardo Garnier said it’s essential that Costa Rica keep students in school to improve their chances of getting a good job. Approximately two-thirds of the country’s young people don’t finish high school, he added.

One part of the plan will be a savings account opened for participating students during their ninth year with money they would be able to withdraw after graduating from high school. Regulations of how the students would be able to spend the money are still being developed, Zumbado said.

To be eligible for the scholarships, students must be between the ages of 13 and 17, live in poverty, have completed at least three years in Costa Rica’s education system and, once selected, fail no more than one year of school, Zumbado said.