Two Associated press headlines: 1) Regents president says access is top goal. 2) States cut aid to college students as demand booms.
Both stories obviously have to do with financial aid, and both have to do with Wisconsins university system.
In a state Senate committee hearing Tuesday, Milwaukee business man Chuck Pruitt, who has served the last six years as the University of Wisconsin System Board of Regents president, said the state must make more money available to low-income students.
That might be difficult given the lack of funding explained in the story carrying the later headline.
It is unknown why he would desire to make that statement when he might know that the state doesnt have any money. He is seeking confirmation by the Senate to serve another six-year term after being granted another appointment by Gov. Jim Doyle.
Below are the two stories the two headlines describe, read for yourself and think about what can be done to fulfill Pruitts goal. It might be more difficult than he expects.
Regents president says access is top goal
MADISON (AP) The president of the University of Wisconsin System Board of Regents says his top priority is expanding access to state universities.
Milwaukee businessman Chuck Pruitt told a Senate committee on Tuesday a key part of that goal is providing more financial aid for low-income students. He says the state has made some progress, but needs to do better.
The Senate is expected to approve Gov. Jim Doyles appointment of Pruitt for a second six-year term on the board. It oversees 13 four-year universities and 13 two-year colleges. Pruitt has been board president since June.
States cut aid to college students as demand booms
By Ryan J. Foley
Associated Press Writer
MADISON, Wis. (AP) Struggling with budget shortfalls that reach into the billions, several states are making deep cuts in college financial aid programs, including those that provide a vital source of cash for students who most need the money.
At least a dozen states are reducing award sizes, eliminating grants and tightening eligibility guidelines because of a lack of money. At the same time, the number of students seeking aid is rising sharply as more people seek a college education and need help paying the tuition bill because they or their parents lost jobs and savings during the recession.
Many of the affected programs are need-based grants that provide money that complements financial aid offered by schools and the federal government. Without that cash, some students may be forced to drop out, transfer to cheaper schools or simply have less money available for rent and groceries. Experts fear others will take on too much debt or spend even more time working as they pursue a degree.
Theres almost no question the folks coming in are probably going to have much more difficulty getting by year to year in college and staying enrolled as a result, said Sara Goldrick-Rab, a professor at the University of Wisconsin-Madison and an expert on financial aid. The safety net is falling away.
State financial aid accounted for 12 percent of the grants awarded to college students in 2007-2008, according to the New York-based College Board. While thats a fraction of the financial aid provided to millions of students by schools, the federal government and private scholarships, the demand for aid is booming. Roughly 620,000 more students applied for federal aid in the first quarter compared with last year, a jump of more than 25 percent, according to the U.S. Department of Education.
University of Illinois senior Brandi Cho, 21, said her parents cannot afford to make up the $2,500 she expected to do without after her state grant runs out in the spring. She is considering two options: Find a second weekend job on top of the 15 hours a week she already works, or cram five senior-level accounting classes into the fall semester so she can graduate early.
The best that I can do is just start saving every penny that I have, Cho said.
The cuts come as lawmakers and governors struggle to balance budgets crippled by the recessions impact on tax revenues. Lottery-funded merit aid programs in states such as Georgia, Florida and West Virginia are also pinched as revenues from the games are leveling off and in some cases declining.
In Illinois, a state scrambling to find $11 billion in budget savings, officials are telling 145,000 low-income students who receive the states need-based Monetary Award Program grants to expect no help in the spring semester because money for the program will run out. Lawmakers and Gov. Pat Quinn cut the states aid budget in half; an additional 40,000 students who rely on other state programs will be affected, too.
Ohio is eliminating grants of up to $2,496 for low-income community college students, and cutting them by more than 50 percent for low-income students at four-year universities. The state is axing $640 grants for 58,000 private school students and grants of up to $4,000 for 22,500 students attending two-year, for-profit schools.
Thats a lot of money to someone like me, said Maria Zimbardi, a 33-year-old mother of three in Youngstown, Ohio, who will not receive the nearly $3,300 grant she got last year. She is working part time as a waitress while learning administrative and accounting skills at National College, and is taking out more student loans which now total $29,000 so she can graduate next May.
The Wisconsin Higher Educational Aids Board projects that more than 20,000 low-income students will not receive grants because of a lack of money and a sharp increase in applicants. Jennifer Matamoros is among them, and the senior at the University of Wisconsin-Whitewater where tuition has increased about 6 percent a year in each of the past four years is worried about paying bills without the $2,600 grant she got last year.
She said shell likely borrow more and graduate with $30,000 in student-loan debt, which is as much as she expects to make a year in her career as an elementary school teacher. They just keep raising more costs and taking away more money, she said.
Education Sector, a Washington-based think tank, warned in a recent study that student debt was at an all-time high, with a rising share owed to riskier private student loans. The study warned that could eventually reduce access to higher education and lead to more students defaulting on their loans.
Its going to start to impact the equation of whether college is worth it for some students, said Erin Dillon, a policy analyst for the group.
In Michigan, where state lawmakers have yet to pass a spending plan, about 96,000 students dont yet know the value of their Promise scholarships or if they get one at all. The states Republican-controlled Senate voted to eliminate the $140 million program that provides high school graduates with up to $4,000, but Democratic Gov. Jennifer Granholm has vowed to restore some of money.
Financial aid officials in other states are making difficult choices with the limited funds they have. In Massachusetts, where the state financial aid budget was cut 10 percent, the Office of Student Financial Assistance plans to make deep cuts to other aid programs to preserve the need-based Mass Grants program. Even so, many grants could fall by $400 to $500 compared with last year.
Wisconsin decided to slightly increase the average grant awards because students are showing much greater need, said Connie Hutchison, the executive secretary of the Wisconsin Higher Educational Aids Board. That meant university students who applied in July for aid are learning the pool of money has run out.
Were getting a lot of questions about why students are not getting financial aid they got last year, Hutchison said. Its so hard to explain to them.
Educational opportunity is indeed a goal most politicians and administrators want to expand, but until the economy improves goals like Pruitts might be put on the back burner as colleges and universities struggle to maintain their current level of class offerings and opportunities.
Perhaps other changes in how higher education operates needs to be explored. No tenured instructors? More online courses? Theses are possible ways to save money.
Unless something drastic happens soon, Pruitts ambition will be tempered by reality.
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