¨      The ASGP means a great deal to independent college students in your district. 

It’s also good public policy.

ü      Alabama subsidized the education of students at four-year public institutions at an average rate of $12,100 in 2006, 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—and regardless of whether that student is an Alabama resident or not.  The ASGP per student award is currently less than 5% of this amount.

P      AAICU colleges enroll more than 24,000 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 $208 million in additional funding.

P      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.

ü      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.

ü      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.

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

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

P      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

SC:      State Tuition Grant average award $2,150 per year (more than $26m total)

GA:      Tuition Equalization Grant of $900 per year

NC:      Legislative Tuition Grant of $1,900 per year

¨      Alabama’s independent colleges serve a public mission.

ü      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.

ü      Over 90% of Alabama’s independent college students require financial aid.  In 2006 alone, our institutions provided more than $79 million in financial aid out of their own resources.

ü      The combined expenditures of the 14 AAICU colleges for 2006 totaled more than $365 million, for a direct economic impact of more than $914,196,780.

ü      Our schools play a critical role in educating the neediest students in Alabama.  In 2004-2005, 52% of the fall term students enrolled in our 14 independent institutions received a federal Pell Grant compared to 36% of the fall term students at Alabama’s 4-year public institutions. 

ü      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.

The Alabama Student Assistance Program is funded by both the state and the federal Leveraging Educational Assistance Partnership (LEAP) Program, which provides funds to the state to help those undergraduate students who demonstrate substantial financial need. This program is administered by the state but also is funded with matching federal dollars. It is the state’s only need-based student aid program for residents attending postsecondary education institutions in Alabama. The ASAP received a 158% increase in funding since academic year 2005-2006.