HOUSE BILL REPORT

HB 1445

As Amended by the Senate

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

Majority Report:  Do pass.  (11)

      Signed by Representatives Jacobsen, Chair; Spanel, Vice Chair, Van Luven, Ranking Republican Member; Doty, Fraser, Inslee, Jesernig, Miller, H. Myers, Rector and Wood.

House Staff:Susan Hosch (786-7120)

AS PASSED HOUSE MARCH 3, 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.

By law, benefits of the State Need Grant Program are available only to full time students.  By law, 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 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 Student Financial Aid Program, more commonly known as the State Need Grant Program. Students will be eligible to continue participating in the program for five academic years.

EFFECT OF SENATE AMENDMENTS:  A technical amendment and an intent section were adopted.  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.

Fiscal Note:      Requested January 25, 1989.

House Committee ‑ Testified For:    Mike Bigelow, Office of Financial Management; Shirley Ort, Higher Education Coordinating Board; Erik Beck, Washington Student Lobby; Tika Esler, Washington Financial Aid Association; Jim Chicatelli, University of Puget Sound; Jim Sullivan, Washington Student Lobby; Elizabeth Woody, Washington Student Lobby; Bob Maier, Washington Education Association; and Jan Yoshiwara, State Board for Community College Education.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Most students are taking five years to complete their baccalaureate degree.  The reasons for students taking longer than four years for completion are many and varied, but include: course sequencing problems, the need of many students to work and attend school on a part time basis, and the need of some students to take remedial and developmental classes before entering a baccalaureate degree program.  In addition, a number of college departments have increased requirements in a student's major field of study to the extent that graduation in that field is not possible unless a student is enrolled for five years.

The need to include part time students in the Need Grant Program was the issue heard most often by the Higher Education Coordinating Board during their review of financial aid policies.  Part time students include a large number of older, returning students; single parents; displaced homemakers; and dislocated workers.  These students often have financial aid requirements that are not met by any aid program.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 89; Absent 3; Excused 6

Absent:     Representatives Appelwick, Fraser and Morris.

Excused:    Representatives Brekke, R. Meyers, Sayan, H. Sommers, Wang and K. Wilson.