California Colleges
Would Receive Increased Student Aid Under GOP Plan
to Restore Fairness to Higher Education Programs
WASHINGTON,
D.C. -- A legislative proposal being readied by Republicans
on the U.S. House Committee on Education & the
Workforce would result in significant increases in
federal financial aid for a number of California
colleges and universities, committee leaders John
Boehner (R-OH) and Howard P. "Buck" McKeon (R-CA)
said today.
"The Republican plan to increase
federal funding to California universities will make
the dream of attending college a reality for many
low and middle-income students," McKeon said. "Some
schools that have experienced rapid enrollment growth
are at a disadvantage because of an outdated formula
that doesn't consistently benefit needy students.
I will fight hard to ensure that an equitable system
is put in place and that all California institutions
receive their fair share of campus-based aid funding." House Republicans recently announced
plans to introduce legislation to bring fairness
to an outdated federal formula used to distribute
federal campus-based student aid among the nation's
colleges and universities. Because of special provisions
inserted into federal law over decades, the current
campus-based aid distribution formula disproportionately
benefits rich, elite or well-established colleges
at the expense of many low and middle-income students
attending newer, often lower-cost schools.
The
House GOP plan, expected to be formally introduced
this spring, would help colleges in California that
serve a greater percentage of needy students. Based
on a committee staff analysis of U.S. Department
of Education data, if the Republican plan were in
effect today, these schools could see their campus-based
aid funding for Supplemental Educational Opportunity
Grants (SEOG), Federal work-study programs and Perkins
Loans increased by an average of 3.4 percent, and
some increases could be as high as 10 percent. The
following estimates show how California students
and schools would benefit if the first phase of the
GOP plan to restore fairness to federal campus-based
aid programs was in place today.
Students
and schools across California stand to benefit from
the changes.
· CALIFORNIA
COLLEGES AND STUDENTS WIN: Under the GOP campus-based aid plan, California
colleges and students would collectively receive
about $6 million more in annual federal funding
than they are likely to receive under the current
federal campus-based aid formula. This
funding would come through the three federal campus-based
aid programs - the Supplemental Educational Opportunity
Grant (SEOG), Federal work-study and Perkins Loan
programs.
· Republican plan
helps USC: The University of Southern California
would receive an increase of more than $1 million, or 9.4 percent, from $10.6 million to $11.6
million for the three programs, under the more
equitable plan proposed by House Republicans.
· Stanford students
would benefit from GOP plan: Stanford University students participating
in SEOG and work-study programs would receive an
increase of $250,000 from
$3.54 million to $3.79 million.
· The California
State University system stands to gain almost $500,000
for all three programs, up from $17.3 million to
$17.8 million. Nearly every school in the system
would realize gains for each program.
· Nearly every school
in the University of California system would receive
increases in SEOG and work-study funds.
· More than two
dozen public community colleges throughout California
would receive increased funding through the GOP
plan.
· Hundreds more
California colleges and universities will benefit
from the Republican plan to distribute federal
financial aid funds more fairly. Among them:
· UC-Berkeley would receive a 230 percent increase in federal funding for its Perkins
Loan Program.
· UC-Santa Barbara would receive a 90
percent increase in federal funding
for its Perkins Loan Program.
· Loyola Marymount University would
receive almost $3.2
million in federal funding, up from $2.9
million, for all three programs.
· Chapman University's funds would
almost double, climbing by more than $830,000 to
$1.8 million for all three programs.
· Occidental College would receive
almost $880,000 up
from less than $820,000.
· Saddleback College, one of the many
community colleges the GOP plan would help, would
gain more than $14,000, bringing funding from $234,100
to $248,800.
· Fresno Pacific College would realize
an 8.5 percent increase from $305,000 to $331,000.
As the New York Times noted recently, "[t]he federal
government typically gives the wealthiest private universities,
which often serve the smallest percentage of low-income
students, significantly more financial aid money than
their struggling counterparts with much greater shares
of poor students." ("Rich colleges receiving richest
share of U.S. aid," Winter, NY
Times, 09 Nov 03)
The Republican plan would begin to
change this, to provide fairness for schools that serve
larger numbers of low and middle-income students.
The National Association of Student
Financial Aid Administrators (NASFAA), which represents
the student financial aid interests of most U.S. colleges,
is urging Congress to end the special subsidies. And
in his 2005 budget request, President Bush called on
Congress to provide fairness for low and middle-income
students.
For further information on House
Republican efforts to expand college access for low and
middle-income students, visit http://edworkforce.house.gov/issues/108th/education/highereducation/highereducation.htm |
