As an aside, I know of several states that have similar programs - I'd thought that in many states, so long as you scored sufficiently high on the SAT or ACT, you were eligible to automatically get a partial (if lower) or full (if higher) scholarship to in-state public institutions.
A really good question. I'd say the US does a very poor job of either providing that preparatory edu for those who need it or guiding those who fall out of the educational system into trade schools and other vocations, something that Germany also does very well. Not sure what the solution is for the US... we're so focused on the people at the top and the bottom that everyone else is left out.
So yes, if you were basically competent but didn't put the time in in highschool, for whatever reason, then sure - if you're willing to do the work no reason they can't succeed.
And given that high schools are such a mixed bag, I do think it's worth at least looking at giving more kids a shot. It might be interesting to have a slate of such scholarships reserved for students who wouldn't qualify on entry, but would after first semester/year.
Which isn't to say everyone should go, I really wish there were more real vocational options. But if they want it and can do the work, absolutely.
Our largest school, University of Georgia, its a bit more. Something like $10,000 a semester but the tuition is the same at each school the fees are much higher at UGA.
*Georgia Tech - I am not 100% on tuition/fees for this school.
I feel you on the working while in school thing, thats the reason I lost my Hope Scholarship!