UC System Considers “Free” Tuition for Lower-Income Families

Student Loan Girl — Tue, 27 Jan 2009 23:02:00 GMT

The University of California is considering a program which would offer certain students free tuition, reports The Chronicle of Higher Education (“U. of California to Consider Covering Tuition for Families Below State’s Median Income,” Jan. 22, 2009).

As part of a series of measures intended to “broaden the reach of the university during the recession,” the university would cover the tuition and fees at any of its nine college campuses for an estimated 50,000 qualified students whose families have incomes below the state’s $60,000 median household income level.

The proposed tuition plan, known as the Blue and Gold Opportunity Plan, is intended to encourage more low and middle-income students to attend a UC school, at a time when tuition costs are rising and state funding for colleges has been significantly reduced.

Estimated to cost the school $3 million a year, the plan will likely be funded from tuition increases, as well as from existing state, federal and institutional aid, said university system president Mark Yudof. The University of California’s Board of Regents must first approve the proposal, a process that The Chronicle of Higher Education reports could take several months.

It’s possible that the regents could vote to raise undergraduate tuition by as much as 10 percent, the Chronicle suggests, at the same time that regents approve the “free tuition” plan.

Share this post: email this | del.icio.us | reddit

Colleges Step Up, Help Students With Extra Financial Aid

Student Loan Girl — Thu, 08 Jan 2009 23:13:00 GMT

If recent data is any indication, families are struggling to come up with the cash they need to send their children to college, and schools across the country are doing something to help those who’ve come up short, reports The Chronicle of Higher Education (“Colleges Offer Extra Aid to Strapped Students,” Jan. 9, 2009).

During the first few days of the new financial aid season that began Jan. 1 — the first day college students could submit their FAFSA (Free Application for Federal Student Aid), the application required for students seeking federal aid — 40 percent more families over the previous year had already sought out financial assistance (“Families Face Fierce Competition for Student Aid: Season Starts With Sharp Increase in Demand,” Business Wire, Jan. 6, 2009).

“The demand for student aid has been climbing as the recession batters family budgets, parents’ jobs are eliminated, and self- employed parents experience business downturns,” said Craig Carroll, CEO of Student Financial Aid Services, a financial aid advisory company.

Schools Create New Aid Programs or Beef Up Existing Ones

In response to the growing number of families facing limited options to pay for college, some schools are offering families an extended grace period to pay tuition bills, and other schools are meeting the growing demand for aid by expanding existing financial aid programs or creating new ones.

At Northern Illinois University, for instance, school administrators recently introduced the Huskie Advantage, a new aid program that meets tuition costs not covered by state and federal aid. The program, which the school will subsidize by shifting financial funds away from upperclassmen to underclassmen, who usually don’t qualify for as much federal aid, is only available to freshmen who qualify for Pell Grants and need-based state grants, according to Brent Gage, the school’s assistant vice provost for enrollment services.

Agnes Scott College in Georgia also recently announced a new program, the Agnes Solution, targeted at students who are eligible for the state’s Hope Scholarship. The school hopes that by providing qualified students with a $13,500 Agnes Solution scholarship and a $3,000 grant each year, combined with the $3,000 Hope Scholarship, the program will be able to cut the cost of attendance almost in half.

As part of a Saint Mary’s University of Minnesota plan to lower the cost of attendance for low- and middle-income students to match the average cost of the nation’s Big Ten universities, the school is expanding its Brother James Miller Program for Access. The program originally only covered students who met certain academic qualifications and whose families made less than $75,000, but due to the economic downturn, the institution has raised the income qualification to $100,000, and is currently collecting private funds so that it may provide aid for the school’s most financially needy students.

Share this post: email this | del.icio.us | reddit

Student Loan Blog : state aid

UC System Considers “Free” Tuition for Lower-Income Families

Colleges Step Up, Help Students With Extra Financial Aid