NASSGAP 2006 FALL CONFERENCE WYNDHAM BURLINGTON HOTEL BURLINGTON
NASSGAP 2006 FALL CONFERENCE WYNDHAM BURLINGTON HOTEL BURLINGTON, VT October 22 -25 2006 STATE UPDATE
Alabama
Alaska Funds appropriated to the Alaska Student Loan Corporation, currently $500, 000 per year, constitute state match for 2006/2007 LEAP participation Governor’s bill to establish $20 million Alaska Student Loan Corporation endowment for need-based grants did not pass, based on uncertainty regarding revenues related to the proposed Alaska natural gas pipeline University of Alaska Board of Regents will decide in September on proposed 7% tuition increase University of Alaska establishing need-based tuition grant program for 2007/2008, to be funded through allocation of a portion of general tuition revenues State financial climate very uncertain based on potential for oil production shutdowns or slowdowns related to pipeline corrosion, and on uncertainty about creation of a natural gas pipeline and related contracts New governor to be elected in November (incumbent lost to newcomer in primary election), so significant state leadership changes expected
Alaska College Access Alaska State Board of Education opts not to create statewide rigorous high school curriculum Sheldon Jackson College, state’s oldest institution of higher education, on show cause status with accrediting agency Alaska Commission on Postsecondary Education scheduled to open the Alaska Resource Center for Higher Education Success (ARCHES), a walk-in college access resource and information center, in Anchorage in spring 2007 Alaska Commission on Postsecondary Education and the University of Alaska aggressively publicizing importance of preparing early to qualify for ACG and SMART grants
Alaska Coalition of Alaskans Supporting Higher Education (CASHE), plans for third Alaska statewide College Goal Sunday event Alaska’s College Goal Sunday and the University of Alaska February FAFSA Frenzy events result in significant statewide increases in FAFSA filing Alaska Department of Education and Early Development receives grant to participate in Unity project, making Alaska K-12 pipeline data available for research Alaska schools continue to struggle with NCLB, with almost 40% of schools failing to meet AYP requirements
Arizona The 2006 legislative session directed an additional $10. 2 million to student financial assistance. The Arizona Financial Aid Trust received $5. This is a public university tuition program that sets aside a small percentage of student tuition to be matched by state funds. These funds are placed into a trust for need-based financial aid. This year the State agreed to match with the $5 M, and allowed the grants to low-income students to increase to 75% of the funds in the trust. The additional, $5. 2 M was dedicated to student financial assistance for students attending private colleges & universities. A new grant (really a forgivable loan) was established of $2000 per year up to $8000 total. The “grant” must be repaid if the student does not complete a baccalaureate within a 5 year time period. The tax incentive for the Arizona 529 plan failed. We are now one of only 10 states lacking this incentive.
Arizona This was the second year of Arizona’s first “higher education committees” in both the house and the senate. The number of higher education bills exceeded 60. This is more than double that of recent years. A number of these bills addressed student financial aid. In addition were bills filed that restructured the “coordination” of higher education sectors (governance), addressed institutional accountability, community colleges offering 4 -year degrees, a work-study bill for internships, and much more. The new leadership following the election will determine if these new committees focusing on higher education will continue, or if Arizona will return to a single Education Committee inclusive of K-12 and higher education. Governor Napolitano has established a P-20 Council and the Council is looking at strengthening the high school curriculum in order to prepare students for postsecondary education and workforce options.
Arkansas
California Cal Grant Programs - The Legislature and the Governor continue to support California’s need-based programs. (Grown to over $800 million in FY 06/07 and nearly one-quarter million students in the programs); Federal Chafee Grant Program - For Foster Youth, program contracted with Department of Social Services, continues receiving strong support (Federal Funding - $7. 8 mil); the Legislature and the Governor authorized an additional $5. 7 million to supplement federal funds; total state and federal funds for the 2006 -07 academic year to $13. 5 million; Other Commission Programs - Continued interest in loan assumption programs; besides existing $43 million program for teachers, the State now has new program for 100 nursing faculty students and another new program to assume loans for students who agree to work in a state facility. Public Awareness Campaign - The Commission approved up to $2 million dollars for the 2006 -07 Cal Grant Public Awareness Campaign.
California Cash for College - Beginning in January of 2007, Cash for College will offer up to 300 workshops across the state. This past year, nearly 20, 000 students and family members were served at 280 workshops in 42 counties from Siskiyou to San Diego. More than half of students who attended were first in their families to attend college. Once again, through our partnership with the Education Financing Foundation of California, Cash for College workshops will provide a $1, 000 scholarship opportunity to high school seniors who complete the Cal Grant financial aid application process.
California Legislation – Passed and Pondered Signed legislation: Increases the age limit from under 24 to under 27 for transfer entitlement awards (AB 2813, Ch. 822); allows students who did not pass CHASEE but meet the requirements for a high school diploma by Dec. 31 of the academic year are still eligible for a Cal Grant award (SB 1383, Ch. 652); expands SNAPLE to students who agree to work full-time as clinical registered nurses in stateoperated facilities (SB 1309, Ch. 837); Legislation Held: increase access costs for Cal Grant B awards as reflected by the CA Consumer Price Index (AB 1315); expand APLE program to include students that receive a teaching credential in special education (AB 476); increase the number of competitive Cal Grant Awards from 22, 500 to 23, 000 (SB 1264); Note: AB 2813 contained language to increase the number of competitive Cal Grant Awards to 45, 000 and under the Cal Grant B, it would have allowed tuition and fees in the first year. This language was removed as the bill moved forward.
California November Election – California voters will be selecting either Governor Schwarzenegger (R) or Phil Angelides (D) for Governor of California; CA voters will also be choosing 12 new state Senators and 29 new state Assemblymembers.
Colorado
Connecticut Capitol Scholarship Program - The state’s need- and merit-based aid program administered by the Connecticut Department of Higher Education received a $2. 1 million increase in state funding and eligible for LEAP and SLEAP funding for FY 07, allowing a total program increase of 36% over FY 06. As of Fall 2006, over 5, 500 students will be awarded Capitol Scholarships, an increase of 700 grants available to needy Connecticut students, with an average award increase of about $200. The maximum award amount for recipients in this program was increased from $2, 000 to $3, 000 for FY 07. A record 30, 000 FAFSA applications were downloaded and reviewed for this aid program for 2006 -2007, an increase of over 7, 000 from the previous year. Connecticut Aid to Public College Students and Connecticut Independent College Student Grant Programs – Allow funding from the state to be paid directly to state public and private institutions to award aid to needy Connecticut students. Over 16, 000 aid recipients are awarded between the two programs, totaling over $32 million in financial aid grants.
Connecticut “Engineering Connecticut” and “You Belong” Loan Reimbursement Programs – New for 2006 -2007, legislation provided $500, 000 for 2 new loan reimbursement programs for persons with undergraduate or graduate engineering degrees who are newly employed in the state on or after January 1, 2006 as engineers (“Engineering Connecticut” Program) or for graduates of doctoral programs who are newly employed in Connecticut in economically valuable fields on or after January 1, 2006 (“You Belong” Program). Minority Teacher Incentive Program (MTIP) – State-funded program with close to $500, 000 in annual allocations. Provides up to $5, 000 per year for up to 2 years in scholarship aid to students enrolled in their 3 rd and/or 4 th year of a teacher preparation program at a Connecticut college and up to $2, 500 per year for up to 4 years in loan reimbursement stipends for previous scholarship recipients who are teaching in Connecticut public schools.
Connecticut Weisman Scholarship - New for 2006 -2007 created with private funding and follows MTIP award eligibility and criteria, with the difference of Weisman funding earmarked for students preparing to teach middle or high school math or science at a Connecticut public school. Other student financial aid programs administered through the Connecticut Department of Higher Education include: Awards to Children of Deceased and Disabled Veterans, Connecticut GEAR UP Scholarship Program, and the Robert C. Byrd Honors Scholarship Program. The Department is in the initial stages of developing our first state-level Student Financial Aid data file, collecting records from public and private institutions for recipients of Connecticut aid programs. We also have received interest in holding a financial aid forum this fall from the Board of Governors and several state legislators.
Delaware We are in the first implementation year for the Delaware SEED (Student Excellence Equals Degree) Scholarship. The scholarship provides up to the cost of tuition for a high school graduate to go directly to college either at the Delaware Technical & Community College or the University of Delaware’s Associate of Arts Program. The students need to stay out of trouble (legally), maintain at least a 2. 5 gpa, and enroll full-time to remain eligible. The last estimate of the number of students who may enroll in the two schools was 1, 700, but we have not yet received actual enrollment counts. We received funding ($40, 000) to provide for student internships at The Washington Center for Internships and Academic Seminars located in Washington, DC. The students will be selected by the University of Delaware and Delaware State University and will do their internship during spring semester. The Washington Center provides placement and coordinates the program.
Delaware We are anticipating that legislation will be introduced during the upcoming legislative session that will finalize the integration of the Higher Education Commission into the Delaware Department of Education. This will result in the statutory reference to our agency as a “commission” being removed, and will have our name officially changed to the Delaware Department of Education, Postsecondary Assistance Programs.
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois ISAC has three new programs as of the Spring legislative session. These are the Nurse Educator Scholarship Program , the Forensic Science Grant Program, and the MAP Plus Program. The Nurse Educator Scholarship Program provides assistance to eligible nurse educators and graduate students and scholarships to students pursuing graduate degree in nursing education, with the goal of encouraging nurses to become faculty and ultimately address the nursing shortage in Illinois. Current maximum grants are about $16, 000 in tuition plus a $10, 000 stipend. The appropriation is $1. 35 million. The Forensic Science Program provides grants of up to $30, 000 to students pursuing degrees in forensic science who agree to work in state police forensic laboratories after graduation. The FY 07 appropriation is $500, 000.
Illinois MAP Plus targets students who will not receive a MAP grant in the upcoming year. The MAP Plus program is for families with adjusted gross incomes of less than $200, 000. The student must be enrolled at least half-time as a sophomore, junior or senior. The grant may not exceed $500 per year or $250 per semester. Grants may be awarded only for the Fall 2006 and Spring 2007 semesters (it is a 1 year program) on a first-come first-served basis. Funding for this program has not been made available and is not appropriated but is expected to provided through the restructuring or sale of part of ISAC's/IDAPP’s student loan portfolio and other efforts to maximize ISAC revenue. The General Assembly will convene November 14 -16 and November 28 -30 for the fall Veto Session.
Indiana The State Student Assistance Commission of Indiana (SSACI) was asked to submit several contingency budgets for our largest need-based program from which our state budget agency and other elected officials could review to determine funding possibilities. Indiana operates on a biennial budget cycle. One grant funding option calls for no increases for the biennium while other options assumed tuition increases from 3 -6% with enrollment increases of up to 3. 5%. We’re hopeful that we’ll receive funds to offset at least some of the expected tuition and fee increases but we’re uncertain of the degree this may happen. Too, public and independent colleges have become increasingly more interested in how state financial aid is distributed among sectors. Finally, the agency has requested very modest increases in operational funding due to 12% cuts in this area over the past several years. Currently, the agency’s operational costs are only around one percent of award expenditures.
Iowa The main topic of discussion in Iowa is the gubernatorial race. The incumbent is not running, so we will definitely have a new Governor. The Board of Commissioners discussed the proposed budget knowing that it will be difficult to discuss budget recommendations with the new Governor prior to the upcoming Legislative session. The Board decided not to follow the current Governor's recommendation that all state agencies submit "flat" budgets and, instead, recommended significant increases in the state's need-based student financial aid programs. Those increases were rejected by the current Governor's office, which caused concern among our Board members. However, strong many of our strong Board members are not yet willing to give up on their more progressive proposals. Additional discussion centers around the state's non-need-based State of Iowa Scholarship Program. Although the program's funding was discontinued for the 2005 -06 academic year, the Commission funded the program for that year's Scholars. The 2006 -07 program also is unfunded, but many Legislators and Commissioners still support the recognition of academic talent. It remains to be seen whether Scholars will be selected and/or provided with monetary awards.
Kansas
Louisiana State revenues are up more than expected and $4. 5 M was appropriated to the Louisiana Office of Student Financial Assistance to pay the 1% Federal Default Fee for borrowers who use this agency to guarantee their student loans. This is to allow this agency to be more competitive in the student loan market, to draw more schools/students to use LOSFA to keep dollars earned through the student loan program to support the administration of our state scholarship/grant programs. There is also an initiative to move the guaranty agency under the Board of Regents for a stronger bond between the policy office (Regents) and the operational one (LOSFA). All higher education institutions, with the exception of two technical schools and a few proprietary schools, which were closed for the fall semester due to the effects of Hurricanes Katrina and Rita, have reopened and are completing their academic year. A large number of students returned, but housing is still a huge issue.
Louisiana Through a Memorandum of Understanding, LOSFA and the LA Board of Regents allocated and distributed $8. 5 M in federal dollars to schools in Louisiana for a one-time, need based grant to students (max award is $2, 000) under the Higher Education Hurricane Relief Act. Louisiana named the effort “Return to Learn”, as the grants are targeted to displaced students who did not enroll after the hurricane for spring 2006. Our agency, along with selected partners, will coordinate Louisiana’s first College Goal Sunday event to be held in February, 2008.
Maine FAME completed its programming enhancements for AY 06 -07 that allows schools to verify students for three scholarship programs under the umbrella program called the State of Maine Grant Program. The new program is funded by state appropriation, LEAP/SLEAP funding and administrative fees from our College Savings Plan. The EFC criteria, filing date, full-time or parttime status determine the funding source used to award the grant. The FY 08 -09 budget recommended by the Governor provides for level funding of the Higher Education Programs. FAME is also working on developing a new scholarship program for children whose parents are killed in action in Iraq & Afghanistan. Funds from the College Savings Plan will be used for this program. FAME's board has also asked staff to provide them with a plan, to use additional excess funds from the College Savings Plan for new scholarship awards. The fund currently provides three million dollars a year to the State of Maine Grant Program. Staff will be meeting with our Grant & Scholarship Committee and hopes to implement these changes to the State of Maine Grant Program for Academic Year 07 -08.
Maryland Funding for Maryland’s financial aid programs increased by 12. 2% in FY 2007, from $93. 1 million to almost $110 million. Approximately $16. 5 million was allocated to need-based aid programs to assist full-time, part-time and graduate students. Funding for the Educational Excellence Awards, our largest need-based aid program, increased by 23. 5% to $75. 7 million. In addition, the Part-Time Grant program increased to $6 million and the Graduate and Professional Scholarship increased to $1. 5 million. The Nursing Scholarship Program also received an increase of $1. 1 million. In addition to being able to accommodate more students in the programs, Maryland was able to implement a formula change within its largest needbased aid program to award community college students at a greater percentage of need, 60% versus 40%, and to award students attending 4 -year institutions at a greater percentage of need, 40% versus 35%. The maximum award in this program has also increased to $3, 000.
Maryland During the recently concluded session, legislation passed to establish the Workforce Shortage Student Assistance Grants, which consolidates many of our workforce scholarships and develops a model for identifying critical workforce shortage occupations to be included in the program. With this change, there will now be one scholarship with a set application, set award amounts and one service obligation policy. We will also be able to accommodate new occupations in the program without requiring legislative changes. This will enable our office to better meet the workforce needs of the State. We will be implementing this scholarship in FY 2008. Of course, while we were successful in streamlining some programs, legislation also passed to establish the Afghanistan and Iraq Conflict Veterans Scholarship. Funding has not been provided for FY 2007. We are currently trying to find funding to begin the program during FY 2007 to fund approximately 50 students. Funding was provided in the FY 2007 budget for expansion of our outreach efforts, such as our MD Go For It campaign, translating more publications for parents into Spanish, and development of outreach efforts to middle and high school students.
Maryland Governor Ehrlich also endorsed collaboration between the Health Services Cost Review Commission (HSCRC) and the Maryland Higher Education Commission (MHEC) to administer the Nurse Support Program II. Funding for NSP II is being provided through a 0. 1% increase to the rate structure of all hospitals retroactive from July 1, 2005, which generates approximately $8. 8 million annually to be awarded, to promote the program’s goal of increasing the number of bedside nurses in Maryland Hospitals by expanding the capacity of Maryland’s nursing programs. Initiatives include grants being given to higher education and hospital partnerships to improve retention and increase capacity through collaborative efforts; and financial assistance and fellowships to individuals willing to become nurse faculty members. From a larger policy perspective, MHEC has contracted with a consultant to assist with the development of a postsecondary model for higher education that links tuition, financial aid policy and state appropriations. As you probably know, Maryland is a very high tuition state, and is experiencing significant enrollment growth (as are many other states). The development of this model will address issues of access and affordability.
Massachusetts
Michigan
Minnesota Since our agency is now a cabinet agency, the gubernatorial elections have a special interest to us. This will be the first election cycle that we have gone through since we were turned into a cabinet agency. Our current governor said that he is interested in free tuition at a public college for any student who is in the upper 25% of their high school graduating class so we may be creating a merit based scholarship next year. We are also convening a Textbook Task Force to discuss what can be done to hold down the cost of books for students. We will have a report out in January. We have a new assignment to measure and report of Accountability in Higher Education. We have hired new staff and will report data on our web site. Our budget base has been increased by $300, 000 to accomplish that task. We will have our second College Goal Sunday event this February. 25 sites, up from 18 last year. It is a good event and many non-profits and businesses want to get involved.
Mississippi
Missouri Since May 2005, the MDHE has been working with a State Student Financial Assistance Committee (formerly known as the State Aid Program Task Force) to look at simplification, restructuring, and consolidation of the major state student aid programs administered by the MDHE. A final task force report was adopted by our board in December and the MDHE staff is currently working with all sectors of postsecondary education and the Missouri Legislature to implement some of the recommendations of the task force. One of the most significant proposals involves eliminating the Charles Gallagher Student Financial Assistance Program and the Missouri College Guarantee Program and replacing them with a single need-based program with eligibility based on the expected family contribution. The Missouri Coordinating Board for Higher Education (CBHE) has adopted this proposal and it will be carried forward in the upcoming legislative session. If approved by the legislature, the new program would either take effect in the 2007 -2008 or 2008 -2009 academic year.
Missouri Another of the committee’s proposals that has been adopted by the CBHE and that awaits the legislative process is to update the satisfactory academic progress requirement from satisfactory academic progress as defined by the school to requiring a 2. 5 grade point average for all state aid programs administered by the MDHE. We are also preparing to administer a new scholarship, the Kids’ Chance Scholarship, that will provide assistance to children of workers who are killed or seriously injured in on-the-job accidents. The Kids’ Chance Scholarship should be in effect for the 2008 -2009 academic year. The governor’s Lewis and Clark Initiative, which would spend approximately $350 million that would be generated by selling a part of the student loan portfolio from the state’s student loan secondary market, MOHELA, will go back to the legislature in the upcoming legislative session. The current proposal would use the proceeds to fund capital improvement projects at institutions. It should be an interesting legislative session!
Montana is currently in the second year of our Legislative biennium, so most of our state grant and scholarship programs will receive the same funding levels as FY 2006. The major exception being our Governor’s Postsecondary Scholarship program. FY 2006 was the first year for the renewable scholarship program. The current fiscal year will see a 100% increase in funding for the program. There are both need and merit based awards for the program, with the major focus towards 2 -year programs. The major higher education issue for our upcoming Legislative session will be a freeze in tuition for the Montana University System. Governor Brian Schweitzer has proposed a plan that will cap tuition for the MUS. The proposed plan would cost nearly $50 million in tuition during the next biennium and would be the first time since 1991 tuition didn’t rise for the MUS.
Nebraska
Nevada College Goal Sunday – The third Nevada College Goal Sunday event will be January 28, 2007. NSHE institutions and partners offer assistance at 12 sites across the state, helping students and their families complete the FAFSA. The program, funded by a grant from the Lumina Foundation, offers two $500 scholarships to students attending the event. In 2006, attendance at the event increased 70% over the previous year. GEAR UP – The Nevada Department of Education was awarded a second GEAR UP grant of $18 million, to assist low-income students through middle and high school to prepare for college. The early high school graduates from the first Nevada GEAR UP enrolled in NSHE institutions this Fall, and will receive a GEAR UP grant each semester that they enroll and complete 12 credits.
Nevada Governor Guinn Millennium Scholarship – Nevada’s merit-based scholarship program continues to improve the state’s college participation and retention rates than any preceding program. Since its inception, over 58, 488 Nevada high school graduates have been eligible for the Millennium Scholarship. Of this number, 35, 383 Millennium scholars used their scholarship to attend an NSHE institution or Sierra Nevada College. Through Spring 2006, the program disbursed $125. 9 million to students. State-funded Financial Aid – The Nevada Legislature convenes its 74 th session on February 5, 2007. The appropriation from the state for needbased financial aid remained constant at $17. 4 million per year in 2005. NSHE is requesting an additional $10. 6 million per year in funding for three new state-funded need-based scholarship programs, for students majoring in STEM (Science, Technology, Engineering and Mathematics), Nursing or Education. Student-funded Financial Aid – The NSHE Board of Regents continues to support need-based aid by setting aside a portion of fee increases (up to 50%) for financial aid. For FY 07 this is funded at $14 million across the NSHE.
New Hampshire
New Jersey In preparation for the FY 2008 budget cycle, HESAA has been evaluating the potential additional cost to the need-based Tuition Aid Grant Program to incorporate the federal need analysis changes mandated by the HERA. Historically, New Jersey’s state-specific calculation has been modeled after the federal calculation. However, over time, the state calculation has been modified to reflect the unique financial circumstances of New Jersey’s families, as well as the Governor and Legislature’s intent to assist both low- and middle-income students, while remaining within annual appropriations. Based on our analysis, an additional $20 million would have to be factored into our FY 2008 budget models to incorporate all the HERA need analysis changes before adjusting 2007 -08 TAG award values to reflect increases in tuition charges. Given the fiscal challenges facing the State of New Jersey, this is an unaffordable premise. Currently, we are working with our Board to identify the need analysis changes that will be included in the 2007 -08 state-specific calculation.
New Jersey HESAA staff has also been working to ensure a successful start-up of the NJ STARS II Program during the fall 2006 semester. During the 2004 -05 academic year, the NJ STARS Program was implemented to guarantee that New Jersey high school students who graduated in the top 20% of their class could enroll fulltime at their home county college to pursue a degree knowing that their tuition and approved fees would be covered. NJ STARS students are required to apply for all other sources of federal and State need- and merit-based aid. However, the NJ STARS award covers any remaining tuition and approved fee charges for up to fifteen credits per semester.
New Jersey The first cohort of NJ STARS scholars graduated in 2006. To ensure that NJ STARS scholars who graduated with a cumulative grade point average of 3. 0 or higher and were admitted to a NJ four-year public college or university were able to continue their education without incurring charges for tuition and approved fees, the Governor and the Legislature implemented the NJ STARS II Program. This program provides a scholarship of $2, 000 per semester to the NJ four-year public college or university for each eligible NJ STARS II student for up to four semesters. The institution must waive or provide an institutional scholarship for any remaining tuition and approved fees, for up to 18 credits per semester, not covered by State and/or federal grants and scholarships. NJ STARS II students must maintain continuous full-time enrollment in a baccalaureate degree program and attain a cumulative grade point average of 3. 0 or higher after two semesters of study to qualify for an award for the second year of study.
New Mexico College Affordability Grant During the 2006 legislative session, the State of New Mexico funded the College Affordability Grant at $49 million for college students. The grant will be available to students who are taking six credit hours or more per semester, who demonstrate financial need, and who do not qualify for other state grants or scholarships. The grant will provide qualified students up to $1, 000 per semester for up to eight semesters. Loan-for-Service Programs Nurse Educator Loan-for-Service During the 2006 legislative session, the state of New Mexico appropriated $66. 4 thousand recurring funds to the Nurse Educator Loan-for-Service program. The purpose of the program is to enhance the ability of college- and university-employed nursing educators to obtain bachelor of science, master of science, and doctor of philosophy degrees. WICHE Loan-for-Service During the 2006 legislative session, $137. 9 thousand was appropriated to the WICHE Loan-for-Service program to increase the number of dental student awards to address the high demand for dentists in the state of New Mexico.
New Mexico Loan Repayment Programs During the 2006 legislative session, $299, 700 was appropriated to Public Service Law Loan Repayment Assistance Program, which was established in 2005. The purpose of the New Mexico Public Service Law Loan Repayment Assistance Program (LRAP) is to provide legal educational loan repayment assistance to individuals providing public service in state or local government or the non-profit sector in New Mexico to low income or underserved residents. This is a service-based program, which requires a three (3) year commitment to work in Public Service Law. The maximum award is $7, 200 per year and may be eligible for renewal. Lottery Success Scholarship This year New Mexico celebrated its 10 th year anniversary of the Lottery Success Scholarship. Nearly 38, 000 students from across the state have attended New Mexico public universities and colleges with the help of the Lottery Success Scholarship. According to our data, every county and school district in the state has students who have received their in-state college tuition from the scholarship.
New York In the 2005 -06 Academic Year, NY provided over $865 million in Tuition Assistance Programs to students attending college full time in the state. Over $12 million was provided for students attending part-time. Scholarships and other award payments are over $20 million. There were several changes included in the enacted 2006 -07 budget: 1. New Programs A. Math and Science Teaching Incentive Scholarship A new scholarship program, New York State Math and Science Teaching Incentive Program, was created to increase the number of middle and secondary school educators of math and science in the state.
New York B. Part-Time TAP State Education Law has been amended to create a Part-Time Tuition Assistance Program for students attending the State University of New York (SUNY), the City University of New York (CUNY) and not-for-profit independent degree-granting colleges. To be eligible for Part-Time TAP, students must be freshman in the 2006 -07 academic year or thereafter, have earned 12 credits or more in each of two consecutive semesters, and maintain a “C” average. As such, no students will be eligible until the 2007 -08 academic year. 2. New Reporting Requirements - Schools must report “earned credits” A new provision requires the president of HESC to prepare and submit an annual report on the Tuition Assistance Program (TAP) to the Governor and the Legislature. This will require colleges to report the numbers of credits earned by TAP recipients for each term.
New York 3. Accelerated Study Changes Education Law has been amended to allow students to qualify for accelerated study only upon the completion of 24 credits in the prior two semesters. 4. Standard Satisfactory Academic Progress Chart A change in legislation has created a uniform chart used to determine a student’s satisfactory academic progress. 5. Ability to Benefit Students first receiving aid in 2006 -07, who do not have a certificate of graduation from a recognized school within the United States providing secondary education (a high school diploma or recognized equivalent), must attain “a passing score on a federally approved ability to benefit (ATB) test that has been independently administered and evaluated as defined by the Commissioner of the State Education Department” to receive New York State funded grants or scholarships including Tuition Assistance Program (TAP) awards.
North Carolina
North Dakota The North Dakota University System operates on a biennial budget cycle. Our State Board of Higher Education approved a $2. 8 million increase in their 200709 budget request for student related programs. These student related programs include: our needs based and merit based programs, Indian Scholarship program, teacher and technology loan forgiveness programs, a doctoral program, and WICHE Professional Student Exchange Program. Of the $2. 8 million increase, $1. 7 million is targeted for our State Grant (LEAP) Program for the purpose of increasing our maximum award amount. As a result of legislative action, we are also in the process of conducting a study of our needs-based aid program. This study will be presented to our Board at their November meeting.
Ohio
Oklahoma By constitutional mandate, the Oklahoma Legislature adjourned at the end of May, 2006 without having passed a budget for FY 2007. In a special session in late June the state budget was finalized. While the State Regents' budget request for higher education included a request for $18. 6 million in additional funding for scholarship and grant programs, appropriations for state financial aid programs increased by $13. 2 million, from $59. 2 million to $72. 4 million. The additional $13. 2 million went to three programs-- $10 million for OHLAP; $700, 000 for Academic Scholars; and $2, 500, 000 for the new concurrent enrollment tuition waiver at state system institutions. No increase in funding was provided for the Oklahoma Tuition Aid Grant Program, Oklahoma's LEAP/SLEAP related program, even though $4. 8 million in additional funding had been requested.
Oregon Legislative Issues —Two key elements of The Oregon Student Assistance Commission’s (OSAC) 2007 -09 budget are proposed major expansions of the ASPIRE mentoring program and the Oregon Opportunity Grant program. ASPIRE — Oregon’s highly successful ASPIRE program, now in 81 Oregon high schools, is a one-on-one mentoring program that provides students with postsecondary education information and options for funding their education. The Oregon Student Assistance Commission has proposed funding increases that would allow OSAC to expand the program to all high schools in Oregon. Scholarship Services — OSAC and Educational Credit Management Corporation (ECMC) have formed a partnership to provide financial aid information and the OSAC universal scholarship application to Oregon high schools, colleges, and community organizations. In mid-October, high schools, colleges, and community organizations will receive a packet with sample copies of the 2007 -08 OSAC Scholarship Application and catalog of more than 340 scholarship programs, and ECMC's Opportunities booklet with national and Oregon-specific financial aid information. Schools and organizations will be able to order specific quantities of all these materials through the OSAC website.
Oregon We are releasing the 2007 -08 scholarship application two months earlier than in previous years and have replaced the standard essay questions with four short-answer essay questions The online version of the application has been upgraded to include text fields for the short-answer essays and students’ activities charts. OSAC considered the experience of Oregon State University’s (OSU) similar “Insight Resume” questions, which showed that a simpler, more direct approach to essay questions had impacted the diversity of students applying for admissions and scholarships. Oregon Opportunity Grant (state-funded need-based grants) — Due to an unprecedented increase in state funding for the Oregon Opportunity Grant during the 2005 legislative session, the OSAC was able to make awards available to nearly all eligible full-time students in 2005 -06. For 2006 -07, the program expands again to include awards for all eligible students enrolled at least half time. One unforeseen problem with this expanded funding is underspending. After annual double-digit increases in enrollment and FAFSA filings for nearly 10 years, we saw little or no increase in 2005 -06 filings in the public 2 - and 4 -year sectors and modest increases for the private independent sector. The trend appears to be continuing into 2006 -07 for public and private 4 -year institutions, and we are seeing decreases of 7% or more in filings at community colleges.
Oregon A Governor-appointed working group has recommended a new methodology for extending program services to idle-income families. Under the proposed “Shared Responsibility” methodology, every eligible student would be expected to contribute a reasonable portion of the cost of college through some combination of work, loans, savings, scholarships, and/or institutional aid. Also considered are the family’s portion of the expected contribution, along with Pell Grants and/or federal tuition tax benefits would also be considered for students who qualify. A student’s grant would be the difference between the student’s cost of attendance and these other resources, up to average tuition and fees at public institutions. Current projections show that the proposed plan would cost double current program costs but would help more than twice as many students. System Migration — We explored the possibility of contracting for development of a new processing system that would allow us expand our programs. Due to our unique needs and being fortunate to have two highly talented programmers we decided to build a new system in-house. They have already begun to migrate several whole programs to the new system and expect to complete migration by year’s end. The new system, which uses Sequel Server and Visual Studio, gives us the flexibility and capacity to expand administration of existing programs and take on new programs.
Oregon Performance Measures — Legislative interest in program accountability and effectiveness, in the form of key performance measures (KPMs), has expanded to 12 measures. Several KPMs require collecting data from institutional partners and other outside sources, which required data-sharing agreements and revised participation agreements. The current list of KPMs includes the following: Percentage of growth in number of privately funded scholarships awarded. Ratio of administrative dollars to private and public scholarship dollars awarded to students. Completion rates and persistence rates of grant recipients vs. nonrecipients. Race/ethnicity of students who receive program services. Impact of the Opportunity Grants on enrollment of eligible students (i. e. , determining what happens to awardees who do not enroll). Customer satisfaction with agency services.
Pennsylvania A new formula for determining the eligibility of Pennsylvania State Grant recipients was initiated for 2006 -07. This formula is based on the federal EFC calculation with PHEAA adjustments. From its business earnings, AES/PHEAA contributed $72. 5 million to supplement the state appropriation of $386 million. This influx of funds enabled PHEAA to increase the maximum state grant award to $4, 500, a $1, 000 increase over 2005 -06 and to allow grandfathering of renewal recipients for whom the new formula was not as advantageous. The Workforce Advancement Grant for Education (WAGE) program continues in its second year of operation. This program is designated for independent students who are not eligible for a PA State Grant. Recipients must be enrolled in an academic major related to a high need priority occupation in Pennsylvania. This program is funded with $10 million a year for five years from AES/PHEAA business earnings. It is operated in conjunction with the Pennsylvania Department of Labor and Industry. Our Agency is undergoing a transformation of its logo. PHEAA is our public service brand under which we offer scholarships, grants, loan discounts, loan forgiveness and early awareness of career development, financial literacy and aid for higher education. AES is our commercial brand under which we offer loan origination, guaranty, servicing, financial aid delivery systems, default prevention activities, and consolidation loans.
Puerto Rico
Rhode Island Due to a significant budget deficit, the state grant appropriation for FY 06 was reduced by $2. 2 million. RIHEAA addressed this reduction by limiting the number of grants awarded to late applicants and by supplementing the state appropriation with funds from revenue-generating programs. The state grant appropriation for FY 07 was reduced by another million dollars. For FY 08, all state agencies are asked to submit two budgets – one based on a 15% cut and one based on 3% growth. The governor has proposed increasing the existing State Grant Program’s state appropriation from $5. 7 million to $10 million and appropriating $10 million to a new Academic Merit Initiative Program that would provide tuition and fees for the best and brightest, income-eligible Rhode Island students attending public or private Rhode Island institutions, with the award capped at the tuition and fees of the University of Rhode Island. The governor also proposes to pay student fees for low-income students who enroll in duel enrollment programs while in high school and for AP exam fees for low-income students enrolled in AP science and mathematics programs.
Rhode Island RIHEAA is reviewing RFPs submitted for the development of a state-wide, student-centered web system to, among other things, encourage early college and career exploration, track high school academic progress, offer test taking skills training and tutorials, and allow for electronic transcript transmittal.
South Carolina The SC Tuition Grants Commission submitted its 2006 -2007 state budget request last fall requesting an increase of $11. 6 million to raise the maximum grant at all 20 participating SC independent colleges from $2, 600 to $3, 100. This request was made in anticipation of 12, 600 eligible students actually enrolling full-time at a participating SC independent college. A request was also made to re-new the $4 million Lottery funds received by the SC Tuition Grants Program in 2005 -2006 and to include again in 2006 -2007 the proviso that exempts the SC Tuition Grants Program from mid-year budget reductions. Governor Mark Sanford’s recommendation for funding of the SC Tuition Grants Program in 2006 -2007 was to increase the $4 million lottery funds going to the SC Tuition Grants Program to $10. 1 million. During the debate of the 2006 -2007 state budget, the General Assembly reduced the $6. 1 million increase recommended by the Governor and ultimately approved a $3. 7 million increase to the lottery funds going to the SC Tuition Grants Program. This increase was subsequently approved by the 6 -member House/Senate Conference Committee and signed by Governor Sanford. A proviso exempting the SC Tuition Grants Program from midyear reductions was also included in the budget.
South Carolina As a result of the $3. 7 million increase in lottery funds and a reduction of about 600 in the number of grants anticipated to be made in 2006 -2007 (12, 000 rather than 12, 600), the SC Tuition Grants Commission was able to increase the maximum award in 2006 -2007 to $3, 100. The 2007 -2008 State Budget request for the SC Tuition Grants Program was recently submitted requesting that the $3, 100 maximum grant be increased by the 3. 5% HEPI figure to $3, 200. This $100 increase to the maximum grant will require additional funding of approximately $1. 5 million in 2007 -2008.
South Dakota
Tennessee HOPE Scholarship. Tennessee’s lottery-funded Hope Scholarship program continues to grow. Now in its third year, 2006 -07 expenditures will likely exceed $200 million. The basic $3, 800/year HOPE Scholarship requires either a B average or a 21 ACT score. Additional supplemental awards are available to high achieving and low income students. TSAA Program. There is continued pressure on the need-based Tennessee Student Assistance Award program. The program’s state appropriation was cut about 9% several years ago and only about half of that has been restored. The number of students served has dropped about 35% from peak participation in 2002 -03. Current funding is about $45 million including $1. 3 million LEAP/SLEAP. Short Form Application. There is some legislative interest in developing a “short form” alternative application for the Hope Scholarship program. Currently, all Hope Scholarship applicants must complete the FAFSA, a strategy favored by TSAC’s Board of Directors.
Tennessee Math & Science Teacher Loan Forgiveness Program. This NEW program will provide $2, 000/year awards for up to five years to tenured teachers who return to college to obtain certification or an advanced degree in math or science. Technically a loan, repayment is forgiven for recipients who meet employment expectations. Two years of employment as a math/science teacher are necessary to forgive each year’s loan. Graduate Nursing Loan Forgiveness Program. This NEW program will provide $7, 000/year awards for up to four years to nurses who wish to pursue an advanced degree in nursing in order to teach in or administer a nursing education program. Initially funded through private sources, there is an expectation that the State will provide the necessary resources in the future. Technically a loan, repayment is forgiven for recipients who meet employment expectations. Four years of employment in a nursing education program are necessary to completely forgive the loan. Outreach. Tennessee is a very wide state. It is actually farther from east to west than it is from eastern Tennessee to Canada! Accordingly, TSAC is decentralizing its outreach activities, and has now opened its first satellite office. Additional satellite offices will follow.
Texas We just completed a legislatively mandated study of our programs that exempt Texas residents from paying tuition and/or fees and programs that allow nonresidents to pay resident tuition. Texas currently has 56 such programs. The tuition and fee revenues foregone through these awards totaled more than $251 million in FY 2005. The programs range in value from a single fee for one term to all tuition and fees for the life of the eligible person. The oldest program, authorized in 1929, mentions veterans of the Spanish American War; the most recent programs were authorized in 2005. We are recommending that the current statutes be repealed and rewritten and in doing so we recommend that some programs be eliminated or combined, that satisfactory academic progress be added to these programs and that there be consistency among basic program requirements. Texas is also working on an electronic high school transcript that would start with PK and follow a student through higher education. The PK-12 agency is taking the lead on this. Our legislative session starts up in January 2007 and we are gearing up for that as well.
Utah Rigorous High School Curriculum: Utah encourages rigorous academic curriculums for high school students. Four programs are currently being pushed in the high schools as follows: Centennial Scholarship A student who graduates from high school at the conclusion of the eleventh grade year or during the twelfth grade year is entitled to a partial tuition scholarship (up to $1, 000) to a Utah public college or other institutions in Utah accredited by the Northwest Association of Schools and Colleges. New Century Scholarship To qualify, a student must complete, with a minimum B average, an associate degree or equivalent coursework or complete a college level math and science curriculum by September 1 of the year they qualify to graduate from high school. The scholarship pays 75% of tuition (up to 60 semester hours) at Utah institutions.
Utah Scholars The program encourages students to “achieve to succeed” and it is part of the State Scholars Initiative national network. Financial aid is not directly tied to the program. Students are informed that they can succeed in both college and the workplace by completing challenging math, English, foreign language, social and natural science courses in grades 9 -12. Federal Academic Competitiveness Grants The state’s approved alternative option to the Department’s qualifying rigorous programs of study requires completion of at least 6 credits of concurrent enrollment (college-level courses) in core academic areas (English, math, social studies, or foreign language) with no course grade lower than a B.
Utah Differentiated High School Diplomas: The debate continues in Utah whether or not students who fail the Utah Basic Skills Competency Test (UBSCT) should be awarded a high school diploma. The Utah Legislature mandated that, beginning with the graduating class of 2006, a student must pass the UBSCT in addition to local school district requirements in order to receive a “basic high school diploma of graduation”. The law provides that a student who fails to pass all components of the test may not receive a basic high school diploma but may receive a “certificate of completion” or “alternative completion diploma” under rules made by the State Board of Education. The state currently recognizes both the “basic” and “alternative completion” diplomas as being valid for graduation. Funding: The Utah State Board of Regents and the Commissioner of Higher Education has identified increasing the funding levels for student financial aid as a prime area of focus for the 2007 state legislative session. In the 2006 legislature the base (ongoing) budget for financial aid for fiscal year 2007 was increased a modest $210, 300 or 4%.
Vermont • The Governor of Vermont has proposed a Promise Scholarship to help encourage students to stay in Vermont to live and work following graduation from college. The legislature counter proposed with a slightly different version of the program called Next Generation Initiative. The compromise for 07 -08 was to divide $5 million dollars between VSAC, the Vermont State College system, and the University of Vermont. This money can be spent at the discretion of the receiving body although VSAC was directed to have a needs based component to our eligibility criteria. A commission was established to look at the future of the program and how money should be allocated and for what purposes. The commission will be reporting out to the legislature during the upcoming session. • VSAC received a $1 million one-time funding appropriation from the state of Vermont to raise aspiration and continuation rates. VSAC is using these funds to support an advertising campaign targeted at parents of school age children.
Vermont • The Vermont legislature voted for an increase in the state tax credit from 5% to 10% up to the first $2500 invested in the Vermont Higher Education Investment Plan. • Vermont is facing a change in demographics which is being focused on by all entities within the stat 4 e. The number of students applying for state grants in Vermont continues to decline. Vermont is directly in the path of states in the Northeast who will experience a significant drop in graduating high school seniors between now and • VSAC is now home to over 150 scholarships programs gives out in excess of $5 million dollars annually. Of that $5 million, almost 80 percent comes from private sources. In addition, VSAC has recently begun raising funds for an endowment and now has over 20 endowed funds whose combined totals exceed $1. 5 million.
Virginia A lot has happened in Virginia’s financial aid programs received a substantial increase for FY 07. Undergraduate need based awards increased by $10. 9 million or 12. 9 percent; graduate awards increased by $4. 9 million, a 40 percent increase; and grants to private colleges by $4. 4 million, 9. 8 percent increase. Altogether, financial aid received over $20 million in annual increases. Virginia adopted a policy that will ease the ability for military family members to obtain the in-state tuition rate. This change will put Virginia in line with 45 other states in providing this benefit. Virginia adopted a policy whereby students who exceed 125% of degree requirements would be assessed a tuition surcharge on top of their in-state tuition rate. This additional charge would bring total charges to equivalent to full cost of education. Certain course exclusions are provided as well as an appeal policy. Beginning fall 2006, public institutions will submit institutional performance agreements that will address Access, Affordability, Academic Standards, Student Retention, six-year financial plans, etc.
Washington Learns Governor Gregoire created and chairs a 13 -member committee called Washington Learns to identify inefficiencies and gaps in the current education system, define a high-performing education system, and determine what resources are needed to provide Washingtonians with the best education system in the world. The draft higher education report includes a set of possible strategies including reforms, some of which are: a renewed math and science focus, commitment to access to college and workforce training, and accountability and data analysis. Suggested financial aid related programs include: 1. Developing a “Washington Learns” Scholarship similar to the Indiana 21 st Century Scholar program, 2. Offer State Need Grant to less-than-halftime students and 3. Expand the Opportunity Grant pilot project which is currently a student aid program for low-income community college students in high-demand fields.
Washington State Need Grant: Less-than-Halftime The 2005 Legislature authorized a two-year pilot to extend the State Need Grant (SNG) to students enrolled in four and five credits. Several interesting policy issues have emerged including the balance of progression toward a degree and assisting students overcoming barriers, identification of students in non-matriculated status as a barrier, the recent federal change to allowable components in less-than-halftime student budgets, proportionately far lower award amounts at quarter-time status, etc. As the pilot enters into year two, our agency is submitting a status report to the legislature and is considering making this a permanent feature of the SNG.
Washington Scholarship Clearinghouse A coalition of private scholarship providers and interested parties has been working for over a year to develop a web-based system to house Washington scholarships. Other states such as Oregon and Vermont have been successful in this endeavor, increasing access to scholarships for students, and providing an efficient method for donors to advertise and reach students. The consultant working with the coalition issued its feasibility report recently which suggested the Higher Education Coordinating Board maintain the clearinghouse site.
Washington WAFAX The development of a secure on-line system for Washington institutions to share data regarding co-enrolled students, modeled after Oregon’s OFAX system, will be piloted in January. Features of WAFAX include the ability to code student release of information to enable view of directory, financial aid, or enrollment information for advising purposes. The files will be exchanged in XML format. Institutions will use the system to process on-line financial aid consortium agreements and/or to assist with the expansion of formal dual enrollment agreements between institutions and the growing numbers of co-enrolled students.
West Virginia The West Virginia Higher Education Policy Commission has employed Dr. Brian Noland as its new Chancellor. Dr. Noland returns to West Virginia after significant time in various administrative roles with the Tennessee Higher Education Commission and as a faculty member in the Peabody College of Education at Vanderbilt University. Funding for PROMISE Scholarship, the state’s merit based program, has increased by $13 million raising the total annual appropriation to $40 million. Student awards cover the cost of tuition and fees at public institutions or an equivalent dollar amount at participating in-state independent colleges. The PROMISE Scholarship will provide awards to nearly 10, 000 students during 2006 -07. Additionally, the PROMISE Scholarship announced new requirement for the Class of 2007. All new recipients must obtain a 22 on the ACT with minimum sub-scores of 20 in English, math, science, and reading or a 1, 020 combined score of critical reading and math on the SAT with minimum sub-scores of 490 in critical reading and 480 in math.
West Virginia Funding for WV Higher Education Grant, the state’s chief need based financial aid program, has been increased from $21. 4 to $25 million for 2006 -07. Additional funding allows for a record 13, 600 awards for the 2006 -07 academic year. Student awards cover seventy-five percent of tuition and fees at public institutions or an equivalent dollar amount at in-state independent and/or select proprietary institutions. Both the Higher Education Grant and the PROMISE Scholarship have been assured of a minimal 2% annual funding growth for the next four years. The Higher Education Adult Part-time Student (HEAPS) Grant funding for 2006 -07 remained level at $5 million. The HEAPS Grant, a decentralized program created to serve as an economic development tool for non-degree adults. The Higher Education Student Financial Aid Advisory Board created as part of WV House Bill No. 4049 will provide financial aid expertise and policy guidance to the Higher Education Policy Commission, the Council for Community and Technical College Education, the PROMISE Scholarship Board, the Vice Chancellor for Administration and the Executive Director of the PROMISE Scholarship Program. The initial meeting of this newly established entity will be held later this Fall.
Wisconsin
Wyoming
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