This research investigated whether low income rural functional illiterates could be motivated to learn by a prorated stipend given on the basis of academic performance. Fifty control subjects received a flat $15 weekly; 50 experimental subjects received the $15 plus stipends. Participants eligible for stipends were those in the upper third of their group. Performance was measured by 14 teacher designed tests (one every two weeks) on progress and performance in mathematics, grammar, vocabulary, reading comprehension, and current events. Individuals were admitted to the program by age (18-45), sex (both), educational level (Grade 12 or under), annual income ($2000 or under), and reading level (Grade 9 or less). A money management questionnaire and a student course evaluation checklist were administered. Group discussion and role playing were included for counseling purposes. Major findings were that differences in intelligence (Revised Beta Test), reading and arithmetic (Wide Range Achievement Test), and General Educational Development Test performance significantly favored experimental subjects. (The document includes 59 tables, and application form, staff orientation program outline, questionnaire, checklist, and lists of instructional materials and films.) (LY)