RD306 - SCHEV [State Council of Higher Education for Virginia] Review of the Funding Model for Student Financial Assistance - October 26, 2010


Executive Summary:
The 2010 Acts of the Assembly, Chapter 874, directs the State Council of Higher Education for Virginia (SCHEV) to conduct a study on state financial aid. Specifically, the directive is as follows:

M.1. The State Council of Higher Education for Virginia shall review funding requirements for student financial assistance and examine:

The costs of education used to determine student need by category;
The use of cost allowances and their impact on financial aid;
Gift aid received by students and expected family contribution and their application in the financial process; and
The impact on financial aid requirements of alternative financial aid methodologies.

2. The State Council of Higher Education for Virginia shall communicate the results of this study to the Chairmen of the House Appropriations and Senate Finance Committees and the Director, Department of Planning and Budget, by October 1, 2010.

In support of this directive, SCHEV conducted a series of meetings with representatives from each public four-year college or university, Richard Bland College, and representatives from the Virginia Community College System. In addition to SCHEV and institutional staff, the meetings were widely attended by other central agency representatives including staff from the House Appropriations Committee, the Senate Finance Committee, the Secretary of Education’s office, and the Department of Planning and Budget. These meetings focused on the administration of state financial aid, especially the creation and use of the Cost of Attendance (COA) budget. SCHEV also contacted seven states to determine how their primary state need-based aid program is funded and awarded to students. These states are Indiana, Kentucky, Maryland, Minnesota, North Carolina, Oregon, and Washington.

SCHEV also reviewed a financial aid funding proposal considered by the Virginia House of Delegates during the 2010 session of the General Assembly.