FINAL BILL REPORT

HB 1445

                                  C 254 L 89

BYRepresentatives Inslee, Jacobsen, Heavey, Kremen, Winsley, Rector, Nelson, Wang, Fraser, Leonard, Prentice, Sayan, Dellwo, Sprenkle, Spanel, Basich, Brekke and H. Myers; by request of  Governor Gardner

Authorizing financial aid to needy students enrolled on at least a half-time basis.

House Committe on Higher Education

Senate Committee on Higher Education

SYNOPSIS AS ENACTED

BACKGROUND:

The State Need Grant Program is one of the major financial aid programs funded by the state.  The program is administered by the Higher Education Coordinating Board, and is available to state residents attending a public or private postsecondary institution the state.

Benefits of the State Need Grant Program are available only to full-time students, and a student's eligibility to receive a need grant is limited to four academic years.

During 1988, the Higher Education Coordinating Board instituted an extensive review of the State Need Grant Program.  The board recommended a series of program revisions.  Recommendations that do not require a statutory change include revising the award formula to recognize the real cost of college or university attendance, and providing parents with a dependent care allowance of $400 per academic year for full-time students and $200 per academic year for part-time students.

The board recommended statutory changes that would permit part-time students taking six or more credits to be eligible for a state need grant.  Students enrolled for six to eight credits would receive one-half of the grant amount. Students enrolled in nine to 11 credits would receive three- fourths of the grant amount.  The board has also recommended a statutory change to permit students to receive a grant for five years of undergraduate work.  The board estimates that making these statutory changes will increase the number of persons eligible for a need grant by about 2,600 students during the 1989-91 biennium.

SUMMARY:

Students who are enrolled at an institution of higher education on at least a half-time basis are eligible to participate in the State Need Grant Program. Students will be eligible to continue participating in the program for five academic years.

The Legislature intends that nothing in the act will prevent or discourage an individual from making an effort to repay any state financial aid received during his or her collegiate career.

VOTES ON FINAL PASSAGE:

      House 89   0

      Senate    46     0 (Senate amended)

      House 97   0 (House concurred)

EFFECTIVE:July 23, 1989