SENATE BILL REPORT

HB 2488

BYRepresentatives Rector, Miller, Wood, Jacobsen, Fraser, Prince, Jesernig, S. Wilson, Wineberry, Jones, Dellwo, H. Myers, Inslee and Brekke

Providing assistance to single parents in higher education.

House Committe on Higher Education

Senate Committee on Higher Education

Senate Hearing Date(s):February 19, 1990

Senate Staff:Jean Six (786-7423)

AS OF FEBRUARY 15, 1990

BACKGROUND:

Washington provides financial assistance to needy students, including single parents, through a variety of programs.  These programs attempt to cover each student's educational costs, but are normally based on the needs profile of an average student.  If a financial aid package is not sufficient to cover a student's financial needs, the student must request additional funds from the institution's financial aid office.  Often, the office does not have enough money to cover those extra expenses, so the student must accept a loan, find additional work, or manage without additional funds.

At most colleges and universities, a basic financial aid award does not include money for child care.  However, beginning in the fall of 1990, the state need grant program will provide a child care grant of $400 per year for full time students and $200 per year for part time students.  The federal Pell grant will also provide child care assistance through a small increase.  However, financial aid administrators report that these increases, while helpful, will cover about half the child care costs needed for one child during an academic year.  These two financial aid programs are the only programs that recognize the costs associated with child care.

The 2-1/2 half percent loan fund is a financial program administered by state supported colleges and universities.  Two and one-half percent of tuition collected from all fee paying students is deposited in the fund.  Any money in the fund that is not used for loans may be used for locally administered financial aid programs for needy students.  First priority in the use of the fund will be given to needy students who have accumulated excessive loan burdens.

SUMMARY:

When determining financial aid awards from the 2-1/2 percent loan fund, institutions of higher education will give second priority to needy single parents.  Single parents include participants in the Family Independence Program.  The awards are intended to assist single parents with their educational expenses, including expenses associated with child care and transportation.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested