Gov. Mike Easley released his proposal for the 2007-2009 state budget Thursday, which calls for significant increases for financial aid for needy students.
The recommendation calls for an almost $30 million increase in the existing UNC Need-Based Grant and allows for the creation of a new grant for low-income students.
Easley said in a press conference Thursday that his aim was to get more students to go to college and graduate.
“More people are going to college than ever — that will continue,” he said. “I hope that becomes a problem for us.”
According to Steve Brooks, executive director of the State Education Assistance Authority, the funding Easley proposed for the UNC Need-Based Grant program amounts to a big increase — especially considering the program has an $80 million base.
The budget also calls for $50 million in 2007-2008 and $100 million for 2008-2009 for the creation of the EARN scholarship. The program would provide students with family contributions under 200 percent of the poverty level with up to $4,000. Students would be eligible for the program for two years — if they maintain a high GPA and work 10 hours a week.
Brooks said the program is meant to replace any loans in financial aid packages for low-income students.
“The idea is to keep students from having to borrow,” Brooks said.
If the plan gains approval from the General Assembly, the state would issue the first awards for fall 2008.
Easley pointed out that coupled with the Learn and Earn program, which gives high school students the option to complete an associate’s degree by the time they obtain their diploma, students who qualify for the EARN scholarship can graduate debt-free from college.
“We’re the only state that’s going to be able to say that,” he said.
Brooks said this is another step in increasing the accessibility of college in North Carolina, a state which he said has seen scholarships go up faster than tuition costs.
“The University [system] is more affordable now than it was five years ago, despite the fact that the sticker price is higher,” Brooks said.
The budget proposal will go before the General Assembly, which may alter the appropriations before it makes its final decision.
The General Assembly has historically seen state aid appropriations as a worthwhile investment, and Brooks said there’s been “a lot of interest” in the legislature in increasing access and affordability in higher education.
“It’s like planting a crop and harvesting the seed-corn,” Brooks said. “The economy grows faster with educated people.”
Whatever the outcome of the budget process, Brooks said the future looks bright for students in terms of financial aid. He said he attributes this in part to a changing philosophy about higher education.
“We used to say the best financial aid was low tuition. That’s not true,” Brooks said. “The best financial aid is financial aid.”
