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TG's Legislative Report
January 22, 2004
- Joint Committee on Higher Education Hears From the Texas Student Financial Aid Community
- TG Statement Submitted to the Joint Committee on Higher Education
- Texas Student Financial Community Endorses Legislation
Joint Committee on Higher Education Hears From the Texas Student Financial Aid Community
The state legislative Joint Committee on Higher Education convened in a public hearing on January 20th to receive testimony on student financial aid. The committee has been working since October, 2003 to try and provide financial aid to students in Texas who would otherwise not have the funds to attend college. The Committee spent the bulk of its time hearing from a panel of experts representing the Texas Association of Student Financial Aid Administrators and the Independent Colleges and Universities to describe the student financial aid programs and application and delivery processes.
An overview of the federal student financial aid need analysis system, the Federal Pell Grant Program, the Federal Work Study Program, Federal Perkins Loan Program, the Federal Family Education Loan Program, packaging of student aid, and state student aid programs was provided by the following participants:
- Terry Bazan, Director of Financial Aid at Austin Community College;
- Henry Garcia, Assistant Dean of Financial Aid at Del Mar College;
- Jim Lane, Director, Office of Scholarships and Financial Aid at the University of Houston;
- Pat Jost, Director of Financial Aid at Trinity University;
- Karen Krause, Director of Financial Aid at the University of Texas at Arlington;
- and Carol McDonald, President of the Independent Colleges and Universities.
Several myths such as "my family makes too much money to receive financial aid" and "I don't make good enough grades to get financial aid", were explored. The TEXAS Grant, the TEXAS Grant II, the Texas Equalization Grant, the Texas Public Education Grant, the Hinson-Hazlewood Loan Program, Texas Work Study and other resources for financial aid were discussed. The panel also engaged in a dialog with the Committee concerning:
- administrative differences between the federal programs (90 percent of the student aid in Texas) and state programs, and issues that may arise if the legislature changes eligibility requirements for the state programs;
- how to improve information dissemination about student aid to parents and families;
- the relationship of the cost of higher education to the student financial aid;
- and ways to encourage students to graduate from college in less than six years, or more.
Don Brown, Commissioner with the Texas Higher Education Coordinating Board also gave a presentation on the state's budget concern as it relates to higher education funding in Texas. "Many who qualify, don't get funds," He stated. "The first goal should be to offer funds to those who qualified for a TEXAS Grant but did not receive one."
The Committee also received a brief overview and update of the federal Reauthorization of the Higher Education Act and highlights taken from TG's State of Student Financial Aid in Texas.
The Committee is comprised of Co-Chairs Senator Florence Shapiro and Rep. Geanie Morrison. House Membership includes Representatives Fred Brown, Tony Goolsby, Roberto Gutierrez, Lois Kolkhorst, and Sylvester Turner. Senate Membership includes Senators Kip Averitt, Robert Duncan, Kyle Janek, Royce West, and Judith Zaffirini. The Committee recessed subject to the call of the chair.
The Committee hearing recessed at noon and reconvened at 1:30 pm as the Legislative Oversight Committee on Higher Education to hold its first hearing. on the issue of Spring 2004 tuition increases.
The following University Systems Representatives appeared before the committee for presentations and questions:
- University of Texas System, Chancellor Mark Yudof
- UT Arlington
- Dr. Charles Sorber, President
- Karen Krause, Director of Financial Aid
- UT Austin
- Dr. Larry Faulkner, President
- Dr. Larry Burt, Director of Financial Aid
- UT Dallas
- Dr. Franklyn Jenifer, President
- Maria Ramos, Director of Financial Aid
- UT El Paso
- Dr. Diana Natalicio, President
- Dr. Maggie Smith, Dean of the University College
- Cynthia Villa, VP Finance and Administration
- UT San Antonio
- Dr. Ricardo Romo, President
- Lisa Lazer, Director for Student Financial Aid
- UT Tyler
- Dr. Rodney Mabry, President
- Candace Garner, Associate Dean of Enrollment Management, Director of Financial Aid
- UT Arlington
- Texas A&M University System, Interim Chancellor Benton Cocanaugher
- Texas A&M College Station
- Dr. Robert Gates, President
- Texas A&M Galveston
- Dr. Mike Kemp, Vice President & Chief Exectutive Officer
- Texas A&M College Station
- University of Houston System, Chancellor Jay Gogue
- University of Houston
- Dr. Jay Gogue, President
- Rob Sheridan, Director of Financial Aid
- University of Houston — Clear Lake
- Bill Staples, President
- Michelle Dotter, CFO
- University of Houston — Victoria
- Don Smith, Provost
- Richard Phillips, Director of Financial Aid
- University of Houston
- North Texas State System, Chancellor Lee Jackson
- University of North Texas
- Dr. Norval Pohl, President
- Phil Diebel, Director of Financial Aid
- University of North Texas
- Texas Tech University System, Chancellor David Smith
- Texas Tech University
- Dr. Jon Whitmore, President
- Becky Wilson, Director of Financial Aid
- Texas Tech University
- Texas State University System, Chancellor Lamar Urbanovsky
- Texas State University — San Marcos
- Dr. Denise M. Trauth, President
- Mariko Gomez, Director of Financial Aid
- Texas State University — San Marcos
- Texas Women's University, Chancellor and President Ann Stuart
- Governor Jackson, Director of Financial Aid
TG Statement Submitted to the Joint Committee on Higher Education
The following statement was delivered to the Joint Committee on Higher Education on January 20, 2004 by George Torres, TG's Assistant VP for Congressional and Legislative Relations.
I want to thank the Committee for inviting representatives of the Texas student financial aid community to provide input into your deliberations and hope that the legislature continues to consult with and seek such input in the future on a permanent basis whenever issues or legislation concerning financial access to postsecondary education is considered. These are the experts who must implement and administer the state student aid programs you establish. These programs, along with the other 90 percent of the $3 billion in student aid that comes from federal and institutional programs, are crucial if the goals of the state's Closing the Gaps initiative are to be met. These professionals are a valuable and credible resource who obviously hold the best interests of student and families as the highest priority.
For my part, on behalf of TG, I am here to provide the Committee with highlights of background information TG routinely makes available to members of the legislature and the Texas Congressional delegation that describes the "state of student financial aid" in Texas that we think are pertinent to your study. TG's intent here is to insure, as much as possible, that the legislature have before it all information concerning student financial aid in Texas as it crafts meaningful legislation to address the student financial aid portion of the postsecondary education access issue.
In particular, I encourage you to use The State of Student Financial Aid in Texas as a resource for your study and as a general resource when the legislature considers student financial aid legislation. The report can be accessed at www.tgslc.org/pdf/statefinaid.pdf. To my knowledge, this publication is the only comprehensive publication that provides a timely and current, comparative, and complete overview of the current status of federal, institutional, and state student financial aid in Texas, along with related data concerning the cost of obtaining a higher education in Texas, how work affects a student's ability to complete college, and, what the outlook is for demographic trends in Texas.
For example:
- The total amount of student direct financial aid awarded each year to Texas postsecondary education students totals a little over $3 billion.
- Seventy percent of this amount is in the form of federal student loans — contrasted with 57 percent nationally, and 90 percent is from federal programs — contrasted with 70 percent nationally. These percentages have been trending away from need-based grants, work-study, and state programs and toward increased reliance on student loans and the federal programs, e.g., Pell and Supplemental Education Opportunity Grants, Work Study, etc. The last significant increase in annual appropriations for the federal student financial aid programs was in 2001, and has remained, for the most part, at 2001 levels through 2004.
- The TEXAS Grant program comprises about 6 percent of all direct student financial aid awarded to Texas postsecondary education students.
- Even with the changes made in the area of student aid by the 78th Legislature, TG estimates that federal student loan volume in Texas will increase by 300 percent by 2010.
- While the cost of attending a four-year private university or public two-year college is a bargain, the cost of attending a Texas four-year university is above than the national average ($13,547 vs. $13,463).
- The average student loan debt for all Texas postsecondary education students (in-school and graduated) stands at $8,752 ($12, 585 for graduates) — an increase of 330 percent since 1992.
TG's basic message to the Committee and the legislature is that the universe of student financial aid in Texas is far more than the TEXAS Grant program and the state's contribution to the mix of student aid. Therefore, as the legislature explores ways to improve and expand financial access to postsecondary education for students and families, that it first consider the total picture and ensure, as much as possible, that any new programs or changes to existing state programs are compatible with the majority of what already exists with respect to the types of programs and their eligibility requirements in order to simplify the administration of the programs and ease the delivery of student aid funds to students.
Thank you for your service to the state of Texas and your support for the TEXAS Grant, Texas Public Educational Grant Tuition Equalization Grant and Texas College Work-Study Programs and, most importantly, your continued focus on student financial aid and access to postsecondary education.
Attachments —
Overview: Texas Higher Education
School Fact Sheets: Status of Higher Education
Texas Student Financial Community Endorses Legislation
The following letter to Congressman Sam Johnson (R-TX) was sent to the 34 members of the Texas Congressional Delegation.
January 21, 2004
TO: |
The Honorable Sam Johnson |
FROM: |
Ronny Barnes, President Linda Gonzalez-Hensgen, President Milton G. Wright, President and CEO |
RE: |
HR 3613 — The Student Aid Streamlined Act of 2003 |
On behalf of the Texas student financial aid community we are pleased to endorse and support HR 3613 — The Student Aid Streamlined Act of 2003 — introduced by Texas Congressman Sam Johnson.
HR 3613 proposes to amend the Internal Revenue Code to authorize, through September 30, 2008, the disclosure of certain income tax return information collected and maintained by the Internal Revenue Service to the Department of Education of individuals applying for federal student financial aid. The process proposed in the bill would provide for income verification for all applicants for federal student aid, and disclosure of other financial information only in those cases where there is an income discrepancy between what the IRS has and what is reported to the Education Department and the discrepancy is large enough to impact the amount of federal student aid an individual is eligible to receive. The IRS information could only be disclosed to the Education Department and not to schools, or other parties.
According to the General Accounting Office, had this legislation been in effect in 2001, approximately $602 million in Pell Grant funds could have been either saved, or reallocated to eligible students.
The Texas student financial aid community representing over 100 public and private colleges and universities and lenders participating in the largest student financial aid program — the Federal Family Education Loan Program — along with the Texas Guaranteed Student Loan Corporation, encourage passage of this bill — especially in light of the difficult financial constraints facing the Congress — because it provides additional oversight, holds the potential for achieving a savings, and simplifies the administration of student financial aid.
The Texas student financial aid community is composed of three components involved with the largest student financial aid program for Texas which is the Federal Family Education Loan Program(FFELP). FFELP is administrated by over 100 public and private colleges and universities; over 100 participating lenders; and with the Texas Guaranteed Student Loan Corporation and all components represented encourage passage of this bill. This bill provides a special opportunity especially in light of the difficult financial constraints facing the Congress because it provides additional oversight, holds the potential for achieving a savings, and simplifies the administration of student financial aid.
We strongly urge the Texas Congressional Delegation to work with Congressman Johnson to pass HR 3613.
Thank you for your support and consideration.
Contacting TG Congressional and Legislative Relations
The Legislative Report is a publication of TG Congressional and Legislative Relations.
For information, please call (512) 219-4503 or write to:
Congressional and Legislative Relations
TG
P.O. Box 83100
Round Rock, TX 78683-3100
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