HD55 - Student Financial Assistance

  • Published: 1996
  • Author: State Council of Higher Education for Virginia
  • Enabling Authority: Appropriation Act - Item 176 (Regular Session, 1995)

Executive Summary:
The 1995 Appropriations Act (Chapter 853, Item 186) directed the Council of Higher Education to examine the state's student financial assistance programs and make recommendations on future direction and funding. In reviewing student financial assistance in Virginia, the report considered the history of financial aid, how educational costs are calculated and how it effects families' ability to pay, and current federal, state, and institutional programs.

The report, which the Council approved December 11, 1995, made the following
recommendations:

1) The state should continue to function as the provider of last resort after family resources and all other grant aid sources are considered.

2) All students should be expected to make minimum contributions to the cost of attendance.

3) Because of the low cost of attendance, a modified approach to needs analysis should be implemented for community college students recognizing that federal grants prove a much higher portion of cost than at other institutions.

4) Funding for the Tuition Assistance Grant Program should be increased to $1,650 in 1996-97 and $1,970 in 1997-98 with the understanding that the TAG increase should be greater if the E&G increase in state-supported institutions exceeds 17 percent.

5) The Community College Contract Program should be continued as a pilot program with possible expansion in 1997-98, if shown to be successful and cost-efficient.

6) Funding for the Virginia Guaranteed Assistance and Commonwealth Scholars programs should be increased from meeting 35 percent of remaining need in 1994 to 50 percent by 1997-98.

7) State support for need-based student assistance has increased to a very substantial sum and there should be more consistent use across institutions to advance state objectives. The following general policies should be used by campus aid officers in developing their award packages.

A. All awards should be based on and proportional to remaining need.

B. VGAP students should have priority for available funds and receive a larger award as an incentive for improved academic achievement.

C. An adjustment to the cost of attendance and maximum award should be made for the cost of a computer when one is required by the institution.

D. No minimum award amount should be established.

8) The Council supports Virginia State University's proposal to use discounted tuition and fees, both educational and auxiliary, as a means of increasing utilization of its dormitories, classrooms, and faculty resources.