The State Council of Higher Education for Virginia has passed a resolution to ask the General Assembly for more money in the state financial aid program. The group cites increasing tuition and a struggling economy as sources for a higher number of students elibigle for aid.
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According to SCHEV, in the past decade, the number of students eligible for aid has increased by 11.3 percent, to 60,331 from 54,221. However, the state’s financial aid program has been able to fulfill need-based aid and has, interestingly, seen an increase in the number of awards given to students, a 27.2 percent jump—to 57,433 from 45,140.
At four-year institutions, the average award has increased 62 percent—to $3,441 from $2,124, but this number represents a smaller portion of tuition.
“Tuition is going up faster than financial aid,” says Kirsten Nelson, SCHEV’s director of communications and government relations. “Every year we are required to make budget recommendations, but this year we made a point of saying that financial aid is a priority.”
At Piedmont Virginia Community College (PVCC), tuition has increased steadily for the past eight years. This fall semester, in-state students paid $101 per credit hour, compared to $81.65 in 2008, $72.50 in 2006 and $40.46 in 2002. Out-of-state students paid $304.25 per credit hour for tuition and fees.
Tuition has increased just as PVCC’s enrollment exploded, an estimated 5,600 enrolled this fall, up 30 percent over the past five years. The number of students seeking aid has also increased.
At UVA, the number of undergraduate students with financial need has steadily increased since 2005. Then, 3,275 students, or 23.6 percent of the student body, demonstrated financial need. In the preliminary figures for 2010, that number increased to 4,562 students, or 31.8 percent. The biggest jump was recorded between 2008 and 2009, when the recession kicked in. The number went from 3,798, or 26.6 percent to 4,315 or 30.3 percent.
Tuition at UVA has also seen an increase. This fall, in-state students paid $10,836 compared to $33,782 for out-of-state students.
Carol Wood, UVA’s spokesperson, says that all students with need receive financial aid offers to meet that need. AccessUVA, a financial aid program that meets 100 percent of a student’s financial need has been helping UVA students since its inception a few years ago. In June, Leonard Sandridge, UVA’s COO, told the Board of Visitors that for 2010-2011, $21 million in stimulus funds would be used to fund the program.
According to the SCHEV report, at four-year institutions, the number of students with an income level of $60,000 or more seeking aid has increased. In community colleges, the need for aid has increased in all income levels.
“I think a lot of what’s happening here is the cost of education is increasing and that’s causing someone, for example making $70,000 eight, nine years ago who may not have had financial need … now they are able to demonstrate financial need,” says Lee Andes, SCHEV’s assistant director for financial aid. “There are a number of factors, perhaps more students are applying for aid, but also more students who are already in school being able to demonstrate financial need as well.”
Bottom line, says Andes, the purchasing power of financial aid has decreased.
In addition to the almost $30 million in need-based request, SCHEV has also asked the General Assembly for an additional $5.3 million in financial aid for graduate students for the next academic year. “The purchasing power of the graduate financial aid program has decreased as well,” says Andes. “What we want to do is to return the program back to the 1995 levels of purchasing power. In order to do that we need another $5 million a year over five years to get to that point.”