ALABAMA STUDENT GRANT PROGRAM

 

Alabama Student Grant Program Talker (190 KB)

• THANK YOU for the Alabama Student Grant Program (ASGP).

 In 2008-2009, maximum grant (i.e., for a full-time student) was $426
 Total number of students receiving full or partial grants was 6,181
 Program is now in its 32nd year—applies to undergraduates only
 The total amount appropriated for 2009-2010 was $2,509,163

• The ASGP means a great deal to independent college students in your district. 
It’s also good public policy.

 Alabama subsidized the education of students at four-year public institutions (even those that are not Alabama residents) at an average rate of $14,700 (per FTE) in 2008, according to the Southern Regional Education Board (SREB) statistics.  In other words, this is how much it costs the State to educate one student for one year, over and beyond what the student pays in tuition and fees.  The ASGP per student award is currently less than 3% of this amount.

 AAICU colleges enroll more than 21,000 students of which almost 20,000 are full-time undergraduates.  If the State had to pay the current per-student subsidy for those students at a public institution, it would cost the State more than $294 million in additional funding per year.

 The ASGP recognizes that the families of independent college students are taxpayers, and that their taxes help underwrite public higher education.  The State subsidizes the education of out-of-state students at public universities at a much higher rate than it subsidizes the education of its own taxpaying citizens attending independent colleges.

 The ASGP helps to equalize public and private tuition, thereby allowing more students the option to attend independent colleges and ultimately reducing what the state must spend for higher education overall.

• An increase in the ASGP is overdue.

 State law allows a maximum grant of $1200 per student each year, but the Legislature has never appropriated enough money to allow a grant of that amount.  In 1994, over $6,000,000 was appropriated for the ASGP.  Since that time the grant has been substantially reduced.

 The ASGP represents less than 1% of the overall higher education budget.

 The amount of the maximum grant over the years has not kept up with the nationwide tuition increase.

 Our sister southeastern states are doing a great deal more than Alabama for in-state students attending independent colleges.
TN:  Student Assistance Grant for TN residents up to $2,130 per year;
HOPE Scholarship of $4,000 for 4-year institutions; $2,000 for 2-year institutions
SC:  State Tuition Grant maximum award for 2007-2008 was $3,200 and the average award was approximately $2,900
GA:  Tuition Equalization Grant: recipients receive an award of $600 per semester and can receive payment for up to three semesters per year;
HOPE Scholarship: students attending private institutions receive the following:
Full-time students: $1,750 per semester; Half-time students: $875 per semester
NC:  Legislative Tuition Grant of $1,950 per year for the 2007-2008 academic year

• Alabama’s independent colleges serve a public mission.

 Independent colleges and universities are a major component of the State’s overall higher education delivery system.  Our retention and graduation rates are consistently higher than those of public institutions – again resulting in more return for less investment by the State.

 Over 90% of Alabama’s independent college students require financial aid.  In 2009 alone, our institutions provided more than $83 million in financial aid out of their own resources.

 The combined expenditures of the 14 AAICU colleges for 2008 totaled more than $408 million, for a direct economic impact of more than $1.59  billion dollars per year.

 Our schools play a critical role in educating the neediest students in Alabama.  In 2007-2008, 41% of the fall term students enrolled in our 14 independent institutions received a federal Pell Grant compared to 24% of the fall term students at Alabama’s 4-year public institutions. 
 
 AAICU colleges serve students of all backgrounds.  The average family income of students attending independent colleges nationally is about the same as that of students attending public colleges and also reflects a similar or higher percentage of minorities enrolled.  

Alabama Student Grant Program History

Since 1978, when it was created by an act of the Alabama Legislature, the Alabama
Student Grant program has provided grant-in-aid to Alabama residents for undergraduate attendance at independent colleges in the State.

The Legislature authorized a maximum grant of $1,200 per student each year, but the highest maximum payment was $948 in 1994-95.  The maximum payment is determined by dividing the total amount appropriated, minus an amount retained by ACHE to administer the program, by the number of awards provided to eligible students (full-time equivalent).  However, the average amount awarded per student is about 25% less than the maximum.  In most years this amount does not even cover the costs of a student’s textbooks!