SENATE BILL REPORT

HB 1445

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

Senate Hearing Date(s):March 22, 1989; March 29, 1989

Majority Report:  Do pass as amended.

      Signed by Senators Saling, Chairman; Patterson, Vice Chairman; Bauer, Cantu, Smitherman, Stratton, von Reichbauer.

Senate Staff:Jean Six (786-7423); Sandra Farrow (786-7608)

                  March 30, 1989

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION, MARCH 29, 1989

BACKGROUND:

Washington has a variety of financial aid programs designed to assist needy students.  The State Need Grant Program is one of the major 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 located within the state.

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

During 1988, the Higher Education Coordinating Board undertook an extensive review of the State Need Grant Program.  The board is recommending 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 has 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 eleven 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 approximately 2,600 students during the 1989-91 biennium.

SUMMARY:

Students enrolled at an institution of higher education on at least a half-time basis are eligible to participate in the State Student Financial Aid Program, more commonly known as the State Need Grant Program.  Students are eligible to participate in the program for five academic years.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE AMENDMENT:

Both needy and disadvantaged students must attend on at least a half-time basis.  It is the intent of the Legislature that individuals will not be discouraged from repayment of any state financial aid.  Additional technical changes are made.

Senate Committee - Testified: Representative Ken Jacobsen, sponsor; Jan Yoshiwara, SBCCE; John Klacik, HECB; Rose Ferri, Centralia Community College financial aid officer; Jim Chicatocci, UPS assistant financial aid officer; Mike Bigelow, OFM