Concerned About College Costs, Texas Board Considers Changes to State Financial Aid

Student Loan Girl — Wed, 23 Jul 2008 00:13:00 GMT

The Texas Higher Education Coordinating Board is considering restructuring the state’s financial aid programs amid growing concerns about college affordability.

Proposed changes would raise the academic standards students must meet to qualify for the Texas Grant program, which helps low-income students pay for college, and would merge two of the state’s lesser-known financial aid programs with the Texas Grant. The board would also consider raising the income level at which students qualify for the Texas Grant, according to an article in the Houston Chronicle (“Financial Aid Fix Raises Concerns About Poorer Students,” July 21, 2008).

The Texas Grant program currently serves students who come from families that earn $39,000 a year or less and who have completed the recommended high school curriculum for Texas students, which includes four years of English, math, and science.

Changes Could Negatively Impact Low-Income Students

Some legislators are concerned that if enacted, the proposed changes would benefit middle-income students and widen the financial aid gap for low-income students. They also say raising the academic criteria for students who hope to qualify for a Texas Grant — requiring students to earn a 1350 on the SAT or an 18 on the ACT — would be detrimental to the most financially needy students who the grant program is designed to help.

“The changes will effectively cut off many of these students,” said Max Castillo, president of the University of Houston’s downtown campus.

Even under the current criteria, only about half of the students who qualify for the Texas Grant program receive a grant because there isn’t enough money, says state Senator Rodney Ellis, one of the original sponsors of the Texas Grant. Texas ranks last in per-capita spending for college grants among the 10 most populous states, according to the National Association of State Student Grant and Aid Programs.

If approved by the education board, the new merit criteria would apply for students entering high school in fall 2009.

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Student Loan Blog : National Association of State Student Grant and Aid Programs

Concerned About College Costs, Texas Board Considers Changes to State Financial Aid