TICUA Proposal for Funding the Tennessee Promise

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Magnus Phelps
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1 TICUA Proposal for Funding the Tennessee Promise February 21, 2014 In response to Governor Haslam s request that TICUA provide a thoughtful funding alternative to his plan to fund the Tennessee Promise, TICUA provides alternative outlined below. The current Hope lottery scholarship program provides a scholarship at a community college and scholarship at four year institution. Those students qualifying for the Hope scholarship with an AGI of $36,000 or less would also receive an additional Aspire supplement. High achieving students with an ACT of 29 and a high school GPA of 3.75 may receive an additional General Assembly Merit Scholarship (GAMS). Under the Governor s plan, the lottery scholarship would be redistributed by increasing the base Hope Scholarship for community college students from per year to per year. At the university level the freshman and sophomore levels would decrease from per year to per year but increase the junior and senior year amounts from to per year. Neither the Aspire nor GAMS would be modified. The Governor would also take $300+ million from the lottery reserve to fund the last dollar component of the Tennessee Promise which would make attending a community college free regarding required tuition and fees. TICUA recommends that base Hope Scholarship be increased at the community colleges from to but leave the four-year levels at per year for each year eligible. Maintain the Tennessee Promise by creating the endowment fund, thus keeping community colleges free. TICUA then recommends eliminating the Aspire supplement to community college students who will participate in the Tennessee Promise; these students also receive over in Pell Grant funds, and are eligible for in the Tennessee Student Assistance Award. TICUA also recommends reducing the Aspire at the four-year institutions from to ; putting it back where it was during the inception of the scholarship program. If needed, the TELS Access program could be eliminated at four-year institutions to encourage those students to take advantage of the Tennessee Promise and possibly eliminate the GAMS for community college students to encourage high achieving students to enroll at the four-year institutions. Summary: Use the $300+ million from the lottery reserve to endow the TN Promise. Raise the community college base Hope scholarship from to. Keep the four-year college and university base Hope at for all years. Would not increase the base Hope to for the junior and seniors. Eliminate the Aspire for community college students (net loss of lottery aid is $500 after the base Hope increase, but the Pell Grant for these students exceeds ). Students would still receive between to $5,200 in non-payback aid to apply to living expenses. Lower the Aspire for students at the four-year institutions by $500, (from to ). The TICUA plan, however, provides $500 MORE than the TN Promise proposal. An increase to the

Tennessee Student Assistance Award out of the general fund would go a long way in mitigating the perception that needy students are losing funds.

2 Tennessee Student Assistance Award out of the general fund would go a long way in mitigating the perception that needy students are losing funds. If needed: o Eliminate TELS Access at the four-year institutions. o Eliminate TELS GAMS at the community colleges. The TICUA plan keeps the Tennessee Promise, provides enough revenue to keep the four-year institutions the same base level while also providing an additional $500 for Aspire students enrolling at the four-year institutions when compared to the Governor s plan. Below are some graphic models to demonstrate the differences for freshmen and sophomores. Aspire Student Impact Community Colleges Non-Payback State and Federal Grants and Scholarships Available to Aspire Students at Public Two-year Colleges Note: Any funds above $3,800 is refunded to the student to be used for books, travel, and living expenses. Public Two Year $3,800 $0 Base Lottery Scholarship Aspire Award Pell Grant TSAA The TICUA proposal still provides $5,200 in non-payback aid for books and living expenses for community college students. No TN Promise last dollars are needed.

3 Public Universities Non-Payback State and Federal Grants and Scholarships Available to Aspire Students at Public Four-year Universities $7,600 $7,833 Public Room & Board Base Lottery Scholarship Aspire Award Pell Grant TSAA The Aspire students attending a public university would receive $500 MORE through the TICUA plan when compared to the TN Promise proposal. Students would also receive over $4,500 in non-payback aid to apply to books and living expenses.

4 TICUA Member Colleges and Universities Non-Payback State and Federal Grants and Scholarships Available to Aspire Students at TICUA Member Institutions TICUA $7,673 TICUA $22,683 Base Lottery Scholarship Aspire Award Pell Grant TSAA Aspire students attending a TICUA member college or university receive $500 more in the TICUA plan than provided by the TN Promise plan. The TICUA plan keeps the base Hope scholarship intact.

5 Base Hope Scholarship Recipient Impact Community Colleges Non-Payback State and Federal Grants and Scholarships Available to Base HOPE Scholarship Students at Public Two-year Colleges Note: Any funds above $3,800 is refunded to the student to be used for books, travel, and living expenses. Public Two Year $3,800 $3,600 $3,600 $3,600 Base Lottery Scholarship Pell Grant TSAA The TICUA and TN Promise plans are the same for base Hope Scholarship recipients at the community colleges.

Public Universities Non-Payback State and Federal Grants and Scholarships Available to Base HOPE Scholarship Students at Public Four-year Universities $7,600 $7,833 $4,229 $4,229 $4,229 Public Room &

6 Public Universities Non-Payback State and Federal Grants and Scholarships Available to Base HOPE Scholarship Students at Public Four-year Universities $7,600 $7,833 $4,229 $4,229 $4,229 Public Room & Board Base Lottery Scholarship Pell Grant TSAA The TICUA plan would keep the freshman through senior year base Hope scholarship at the level. The TICUA plan would NOT increase the base Hope to at the junior and senior levels.

7 TICUA Member Colleges and Universities TICUA $7,673 Non-Payback State and Federal Grants and Scholarships Available to Base HOPE Scholarship Students at TICUA Member Institutions TICUA $22,683 $4,540 $4,540 $4,540 TICUA Base Lottery Scholarship Pell Grant TSAA The TICUA plan would keep the freshman through senior year base Hope scholarship at the level. The TICUA plan would NOT increase the base Hope to at the junior and senior levels.

A Chief Academic Officer s Perspective

A Chief Academic Officer s Perspective Denise King Vice President of Academic Affairs Cleveland State Community College dking05@clevelandstatecc.edu Ted A. Lewis Vice President of Academic Affairs Pellissippi