Brief Description: Regarding higher education financial assistance.

Sponsors: Senators Carlson, Kohl-Welles, Mulliken, Shin and Schmidt; by request of Higher Education Coordinating Board.

Hearing Date: 3/28/03

Staff: Barbara McLain (786-7383).

Background:

Educational Opportunity Grant (EOG): The Legislature established the EOG in 1990 as a demonstration project to provide an option other than attendance at a branch campus for "placebound" students. It was based on the assumption that the size and cost of branch campuses might be reduced if students could be encouraged through a grant to attend another institution with enrollment capacity. The EOG was also intended to allay the concerns of independent colleges and universities that branch campuses would reduce their enrollments.

As with most financial aid programs, the EOG recipients must demonstrate financial need. They must also meet several other criteria:

•    Have received an Associate of Arts degree or its equivalent.

•    Intend to complete a baccalaureate degree.

•    Be a placebound student (unable to relocate to complete a college program because of family or employment commitments, health concerns, monetary inability, or similar factors).

•    Reside in one of 13 counties served by a branch campus.

•    Attend a Washington public or private college or university, other than a branch campus, that has enrollment capacity within existing programs and facilities.

The EOG award is capped in statute at $2,500 per year. The Higher Education Coordinating Board (HECB) administers the EOG program.

In 2000 the HECB completed a review of the EOG program and recommended several changes to the program statutes to reflect the current educational climate. For example the HECB recommended removing the association between the EOG and branch campuses by permitting a placebound student living anywhere in the state to qualify for an award and be able to use it at any accredited institution, including a branch campus.

Washington Promise Scholarship: The Washington Promise Scholarship Program was first funded in 1999 and then created in statute in 2002. Its purpose is to provide financial assistance to academically successful high school graduates from low and middle income families.

To be eligible for a Promise Scholarship, students must meet both an academic and an income eligibility standard. To meet the academic standard, students must:

•    Graduate in the top 15 percent of their public or private high school class or;

•    Score at least 1,200 points on the Scholastic Achievement Test (SAT) or 27 points on the American College Test (ACT) on the first attempt.

In either case students must have received a high school diploma to be eligible for a Promise Scholarship.

Summary of Bill:

Educational Opportunity Grant: Various changes are made to the EOG program statutes that affect student eligibility for the grant, where the grant may be used, and other issues.

Eligible students may live in any county in Washington, rather than only a county served by a branch campus. The same residency standards used for the State Need Grant apply to the EOG. In addition to completing an Associate of Arts degree, students may have completed an Associate of Science degree to be eligible for an award.

EOG awards may be used at any accredited higher education institution approved for participation by the HECB, including branch campuses and in-state programs affiliated with higher education institutions accredited in other states. The restriction that grants are for attendance at institutions with unused enrollment capacity is removed.

Instead of being capped at $2,500 per year, the amount of the EOG award is set by the HECB with a minimum of $2,500. The EOG is no longer considered a demonstration project.

Washington Promise Scholarship: Individuals under age 21, who have received a GED certificate rather than a high school diploma, may be eligible to receive a Promise Scholarship if they meet the current criteria of achieving high SAT or ACT test scores.

Appropriation: None.

Fiscal Note: Requested on March 19, 2003.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.