Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
134757546
label
Hope Scholarships [4]
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
134757546
contentType
document
title
Hope Scholarships [4]
citationUrl
collections
Records of the National Economic Council (Clinton Administration)
Peter Orzag's Files
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
134757546
levelOfDescription
fileUnit
otherTitles
42-t-4684601-20171073F-002-002-2018
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
679e758f2d8f1ac6
ocrText
FOIA Number: 2017-1073-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
National Economic Council
Series/Staff Member:
Peter Orzag
Subseries:
OA/ID Number:
12960
FolderID:
Folder Title:
Hope Scholarships [4]
Stack:
Row:
Section:
Shelf:
Position:
S
19
1
1
1
Arkansas Stats / Requirements
PHOTOCOPY
PRESERVATION
5013249308 ADHE #1
675 P02
JUN 03 '96 14:45
COLLEGE-GOING RATE IN ARKANSAS
FIGURES USED TO
1980-1993
CALCULATE CGR
YEAR
RATE
1ST-TIME FROSH 1 HS GRADS
1980
43.0%
12,481 /
29,052
1981
39.7%
11,663 /
29,414
1982
38.2%
11,350 /
29,710
1983
39.3%
11,169 /
28,410
1984
39.4%
10,658 / 27,075
1985
41.6%
11,025 / 26,517
1986
42.9%
11,378 /
26,527
1987
43.5%
11,842 /
27,224
1988
44.3%
12,316 /
27,776
1989
45.5%
12,699 /
27,920
1990
48.3%
12,798 /
26,475
1991
51.6%
13,232 /
25,640
1992
57.3%
14,808 /
25,845
1993
55.0%
14,120 /
25,655
1994
56.1%
1995'
55.4%
These numbers after to
in-state college afferdence
of Arkansas high students school
JUN 03 '96 14:45
Arkansas Academic Challenge Program
991.92
992.93
1993 4).
1994-95
Number
Percent
Number
Percent
Number
Percent
Number
Percent
Number of Applicants:
2,225
100.0%
3,748
100.0%
3,348
100.0%
3,750
100.0%
675 P03
Black
675
30.3%
721
19.2%
537
16.0%
718
19.1%
White
1,467
65.9%
2,891
77.1%
2,673
79.8%
2,861
76.3%
Other
83
3.7%
136
3.6%
138
4.1%
171
4.6%
Male
906
40.7%
1,493
39.8%
1,333
39.8%
1,433
38.2%
Female
1,319
59.3%
2,255
60.2%
2,015
60.2%
2,317
61.8%
1991.92
1992-93
1993294
1994-95
Number
Percent
Number
Percent
Number
Percent
Number
Percent
Number of Recipients:
1,024
100.0%
2,771
100.0%
4,179
100.0%
5,383
100.0%
Black
119
11.6%
318
11.5%
493
11.8%
604
11.2%
White
857
83.7%
2,340
84.4%
3,515
84.1%
4,573
85.0%
Other
48
4.7%
113
4.1%
171
4.1%
206
3.8%
Male
410
40.0%
1,055
38.1%
1,578
37.8%
1,981
36.8%
Female
614
60.0%
1,716
61.9%
2,601
62.2%
3,402
63.2%
5013249308 ADHE #1
Funds Expended for Academic Challenge Program
1991.92
1992-93
1993-94
1994-95
$ Spent
% Chg.
$ Spent
% Chg.
$ Spent
% Chg.
$ Spent
% Chg.
862,730
N/A
2,548,268
195.4%
3,924,278
54.0%
4,919,811
25.4%
5013249308 ADHE #1
675 P04
JUN 03 '96 14:46
ARKANSAS ACADEMIC CHALLENGE SCHOLARSHIP PROGRAM
1996-97 ACADEMIC YEAR
!APPLICATION DEADLINE - OCTOBER 1, 1996!
The Arkansas Academic Challenge Scholarship Program is a guaranteed college scholarship plan to promote academic
achievement and encourage academically prepared Arkansas high school graduates to enroll in the state's colleges and
universitles. The scholarship provides annually the lesser of $1500 or the annual tuition and is renewable for up to 3 more
years provided the student meets the continuing eligibility standards established by the Arkansas Department of Higher
Education. This scholarship will not displace any other state grants or scholarships unless required by federal regulations.
Names of recipients may be released to the news media to recognize the accomplishments of the recipients.
Award is made based on the applicant's meeting minimum standards with regard to the ACT composite score, grade point
average (GPA) in the pre-collegiate core curriculum defined by the State Board of Higher Education, and financial need.
ELIGIBILITY CRITERIA
Applicants must meet the following criteria in order to be considered for the Arkansas Academic Challenge Scholarship.
APPLICATION DEADLINE
1996 calendar year high school graduates must apply by October 1, 1996 in order to be considered for the
Arkansas Academic Challenge Scholarship. If the academic requirements have not been met, the applicant has 24
months after graduation to complete the requirements. However, the applicant must submit an application by the
deadline in order to qualify for the 24 month grace period.
ARKANSAS RESIDENCY
Both the applicant and his or her parents (or legal guardians) must have been Arkansas residents for the 12 months
prior to the applicants' graduation from high school.
...ITED STATES CITIZENSHIP
Applicants must be United States citizens or permanent resident aliens.
HIGH SCHOOL GRADUATION
Applicants must have graduated from an Arkansas high school in 1996.
ADMISSION & ENROLLMENT
Applicants must be accepted for admission and enrolled in an approved Arkansas college or university in a program
leading to a baccalaureate degree, associate degree, or associate of applied science degree within 24 months of
graduation from high school.
ACADEMIC STANDING
Applicants must have a composite ACT score of 19 (or at least 730 combined math and verbal score on the SAT
if the ACT is not available), and a grade point average of 2.50 on a 4.00 scale, in the precollegiate core curriculum.
Those applicants not meeting either the grade point average or ACT score requirements may still qualify for the
Academic Challenge Scholarship if their combined ACT score and grade point average meet satisfactory levels when
applied to the selection index developed by the Arkansas Department of Higher Education. The selection index is
defined as follows:
ACT
MINIMUM
COMPOSITE SCORE
GPA
15-16
3.25
17-18
3.00
19
2.50
20-24
2.25
25-36
2.00
5013249308 ADHE #1
675 P05 JUN 03 '96 14:46
GRACE PERIOD
THOSE STUDENTS WHO HAVE NOT COMPLETED THE CORE CURRICULUM OR WHOSE COMBINED ACT
SCORE AND GRADE POINT AVERAGE DO NOT MEET THE SELECTION INDEX AS DEFINED ABOVE WILL BE
CLASSIFIED AS CONDITIONALLY ELIGIBLE. THESE STUDENTS WILL HAVE 24 MONTHS AFTER HIGH SCHOOL
GRADUATION TO SATISFY THE ACADEMIC REQUIREMENTS AND ENROLL IN COLLEGE. THEY MUST STILL
APPLY DURING THE CALENDAR YEAR IN WHICH THEY GRADUATE FROM HIGH SCHOOL. STUDENTS WILL
NOT RECEIVE SCHOLARSHIP FUNDS UNTIL THE ACADEMIC REQUIREMENTS HAVE BEEN FULLY MET.
Applicants who complete the Technical Preparation Core Curriculum and graduate before the end of the 1996-97
academic year, but have not completed courses equivalent to those in the precollegiate core curriculum, have a
choice of which grade period they would like to take advantage:
1. These applicants may choose the 24 month grace period described above, in which case they will receive
funds only after all academic deficiencies have been met; or
2. These applicants may choose to receive scholarship funds for ONE (1) semester to remove all the course
deficiencies. Students who do not remove all the deficiencies by the end of that semester forfeit any future
eligibility for the Arkansas Academic Challenge Scholarship program.
Applicants who do not complete the Technical Preparation Core Curriculum will not have a choice. They will be
required to use the original 24 month grace period.
CORE COMPLETION
Applicants must complete the precollegiate core curriculum recommended by the Arkansas Boards of Education
and Higher Education. Applicants completing the Technical Preparation Core Curriculum (Tech Prep) are eligible to
apply for an Arkansas Academic Challenge Scholarship. However, these applicants must complete the Technical
Preparation Core Curriculum AND those Precollegiate Core Courses for which a Technical Preparation Core
Curriculum substitute does not exist.
The Precollegiate Core and Technical Preparation Core Curriculum substitutes are defined as follows:
ENGLISH 4 units, with emphasis on writing skills. This area should not include courses in oral
communications, journalism, drama or debate.
NATURAL SCIENCE - 2 units, with laboratories, chosen from Biology, Chemistry, and Physics. Applied
Blology/Chemistry (two-year program) may be substituted for Biology. Principles of Technology I and Il may
be substituted for Physics. This area must not include Physical Science as a substitute for either Chemistry
or Physics. Also, each unit must be from a different area of natural science. For example, Biology and
Advanced Biology or Biology and Zoology would not count as two units. All these courses come from the
same discipline. A course from the other two disciplines is necessary to complete the core.
MATHEMATICS - 3 units including Algebra I, Algebra II and Geometry. Applied Math 1 and II may be substituted
for Algebra I. provided the student passes Algebra II and Geometry.
SOCIAL STUDIES - 3 units including American (United States) History (does not Include Contemporary
American History), World History, and at least one-half unit of Civics or American Government. The remaining
one-half unit can consist of any social studies course. World Cultures, World Geography, or Global Studies
will not satisfy the World History requirement.
FOREIGN LANGUAGE - 2 units of any non-English language. Both of these units must be in the same
language.
DRUG FREE PLEDGE
Applicants must certify that they are drug free and pledge to remain so.
5013249308 ADHE #1
675
P06
JUN
03
'96
14:47
FINANCIAL NEED
Applicants must meet the following financial need requirements:
1. For a family with one (1) dependent child under the age of 21, have an average family adjusted gross income,
for the two years preceding the date of application to the program, not exceeding $35,000.
2. For a family with two (2) dependent children under the age of 21, have an average family adjusted gross
income, for the two years preceding the date of application to the program, not exceeding $40,000.
3. For a family with three (3) or more dependent children under the age of 21, have an average family adjusted
gross income, for the two years preceding the date of application to the program, not exceeding $45,000.
4. For each additional (over 3) dependent child under the age of 21, the income level increases by $5,000
per child.
For an applicant who is adopted and was at least 12 years old at the time of adoption, and whose family includes
one (1) or more adopted children under the age of 21, the income requirements differ from those above. The following
requirements govern such students:
1. For a family with one (1) adopted child under 21 years of age, the adoptive family must have an average
family adjusted gross income, for the two years preceding the date of application to the program, not
exceeding $40,000.
2. For a family with two (2) adopted children under 21 years of age, the adoptive family must have an average
family adjusted gross income, for the two years preceding the date of application to the program, not
exceeding $50,000.
3. For a family with three (3) adopted children under 21 years of age, the adoptive family must have an average
family adjusted gross income, for the two years preceding the date of application to the program, not exeeding
$60,000.
4. For a family with four (4) or more adopted children under 21 years of age, the adoptive family average family
adjusted gross income level increases by $10,000 per child.
Any student who claims to be emancipated or independent must be classified as an independent student as defined
by federal regulations and be eligible to receive federal financial aid as an independent student.
A family that Includes two or more dependent children under the age of twenty-one (21), and two or more of these
children are enrolled full-time in approved Arkansas colleges, shall have the income limit increased by an additional
ten thousand dollars ($10,000) of adjusted gross Income for each additional child (other than the applicant) enrolled
in college. For example, a family with three dependent children all under the age of 21, with one child in an approved
Arkansas college, has a $45,000 average adjusted gross Income limit. If this family has two of the three children (all
under age 21) enrolled In approved Arkansas colleges, the average income limit is increased to $55,000. If all three
of the dependent children are under age 21 and enrolled in approved Arkansas colleges, the average income limit
is increased to $65,000.
AMOUNT OF SCHOLARSHIP
An Arkansas Academic Challenge Scholar will receive an annual award of $1500 or the annual tuition, whichever is less,
to attend an approved Arkansas college or university in a program that leads to an associate, associate of applied science
or a baccalaureate degree. The scholarship will be disbursed by the institution the recipient is attending. The scholarship
will be divided equally according to the number of terms at the institution: two payments for schools on the semester system,
three payments for schools on the quarter system. A check made payable to the institution will be mailed to the institution's
financial aid office to be disbursed to the recipient according to the institution's disbursement polícies. Those recipients
who complete 24 credit hours in an academic year and have a cumulative GPA of 3.0 or above will receive $500 above
the amount they received in the previous academic year.
DEADLINE FOR APPLICATION
è application deadline for 1996 graduates is OCTOBER 1, 1996. Each student must submit an application by October
if the year of graduation from high school. Applications received after this deadline will not be considered for a scholarship.
hose students who have not completed the core curriculum requirements or have not enrolled in school but plan to within
the next 24 months must still apply by the deadline.
Processing will begin in the spring of 1996. Notices explaining the status of each individual's application will be sent to
all applicants. These notices will provide instructions for any further action. Please do not contact the Department of Higher
before
Mav
1.
1996.
003
06/01/96
18:22
2024565557
WHITE HOUSE
cal equipment.
$ YOUTH APPRENTICE-
SECOND EFFORT
SHIP PROGRAMS will be
SCHOLARSHIPS will give a
developed with specific em-
tuition scholarship of up to
ployers to provide motivation
$1,000 to the top ten scorers
for non-college bound students
on the GED test each year.
to stay in school and do well,
Arkansas is one of only a few
and provide opportunities for
states which provides free GED
them to get good jobs, not dead
testing. In 1990, 7,011 people
end ones.
obtained their GED certificate,
almost as many people as
THE ARKANSAS ACA-
dropped out of school.
DEMIC CHALLENGE SCHOLAR-
SHIPS will benefit not just poor
*
ADULT EDUCATION
families, but middle-income working
AND LITERACY programs will
families, too. Scholarships of $1,000
increase the numbers of people
per year will be given to any student
served, including welfare
who takes the core curriculum in
clients, those sentenced to
high school. achieves a 25 grade
learn to read in the court
point average in those courses. scores
system, family literacy and
a 19 on the ACT. stays off drugs,
workplace literacy, to 100,000
enrolls in an Arkausas college and
by 1995. The recent legislative
has a family income of $30,000 or
funding increases of $5 million
less for families with one child and
in fiscal year 1992 and $7
$35.000 for those with two children.
million in fiscal year 1993 will
The law allows an extra $5,000 of
allow the state to serve about
family income per child. Over
30,000 more adult learners in
25 percent of our high school
the next two years. up from
graduates will meet the income
about 42,000 served this year.
elibility.
$
THE POLICE CORPS
Health
program awards college scho-
larships to recommended
#
UNIVERSAL CHILD
prospective and current police
HEALTH CARE PROGRAM is
officers who agree to attend
a program to provide universal
the Arkansas Law Enforcement
child health care by the year
Training Academy upon gradu-
2000. It emphasizes preventive
ation and serve in a police
and primary care for all chil-
department or law enforcement
dren 16 and under. regardless
agency in the state. Arkansas
of family income and builds on
is the first state in the nation
the dramatic expansion of
to pass such legislation.
Maternal and Child Health
Care in the last two years.
2
3
00
18:22
2024565557
WHITE HOUSE
choices program for our older
citizens, and more options in
health care. We have provided
these choices.
They are entitled to believe
that when we use their money to
help other people, those who
benefit will behave responsibly.
We have tried to ensure that.
They are entitled to an effi-
The Honorable, Bill Climon
cient, effective and dynamic
Governor
government that treats them like
State of Ancansas
valued customers and is commit-
The 1990s can be a decade
ted to constant improvement in
of progress for Arkansas But
how we spend their money and
only if we give our best.
deliver services. We have made
a commitment to quality man-
Giving our best does not
agement.
mean denying our problems or
our potential.
They are entitled to fairness
in benefits and taxation through
Giving our best does not
tax reform and access to health
mean being timid, even in these
care, child care and scholarships
troubled and uncertain times.
for young people from working
families. We are moving for-
We must, instead, be bold
ward on those fronts.
and recognize that we are a
community, and we must go
Arkansas must do its part to
forward together or we will all
reach the National Education
be limited in what we achieve.
Goals. Our education reforms
will help us meet these goals.
The 1991 legislative session
building on the standards we
was marked by sweeping reform,
enacted eight years ago.
rooted in the principles we
believe in:
This is an exciting time.
With a commitment to invest-
We increased our investment
ment, opportunity, responsibility,
in our people, both middle-
choice and restructuring govern-
income and poor, in order to
ment. we can have a great dec-
provide more opportunities for
ade in the 1990s.
them.
Our people are entitled to
Biu Cluston
more choices in public schools,
child care vouchers. the Elder-
001
£2024565557
WHITE HOUSE
78TH ARKANSAS GENERAL ASSEMBLY
1991-1992
BILL CLINTON, GOVERNOR
JERRY BOOKOUT, PRESIDENT PRO-TEM
ARKANSAS SENATE
JOHN LIPTON, SPEAKER OF THE HOUSE
ARKANSAS HOUSE OF REPRESENTATIVES
Clinton Presidential Records
Digital Records Marker
This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies the place of a tabbed divider. Given our
digitization capabilities, we are sometimes unable to adequately
scan such dividers. The title from the original document is
indicated below.
Arkansas Clips
Divider Title:
Page 6
2ND STORY of Level 1 printed in FULL format.
Copyright 1994 The Times-Picayune Publishing Co.
The Times-Picayune
July 15, 1994 Friday, THIRD
SECTION: METRO; Pg. B06
LENGTH: 611 words
HEADLINE: STATE FORM NOT RETARDING STUDENT AID PROGRAM
BODY:
Baton Rouge
Your June 27 editorial, "Scholarships go begging," referred to a comment by
Pat Taylor "that Arkansas has a one-page application, while Louisiana's is four
pages with 12 pages of instructions" and concluded that the difficulty of the
form is a major reason for the difference in participation rates between the
Arkansas and Louisiana programs. We disagree with the conclusion.
The "four-page application" used by Louisiana is the Free Application for
Federal Student Aid (FAFSA). All students applying for any of the federal
need-based programs must submit the FAFSA.
Many students will qualify for grants that can be used to supplement other
awards. It would be a disservice to students not to require the application for
federal aid as part of our process.
In addition to being considered for five federal aid programs, students
completing the FAFSA are automatically considered for programs administered by
the state, including the Tuition Assistance Plan (TAP).
Louisiana students receive consideration for more programs by answering fewer
questions and using fewer forms than in most other states, including Arkansas.
The difference in the legislation governing the Arkansas Academic Challenge
Scholarship program and Louisiana's TAP accounts for the disparity in the number
of recipients between the programs. For example: the maximum average adjusted
gross income a family (parents with one child under 21) may receive and still
qualify for the Arkansas program is $35,000, compared to only $26,489 for TAP.
The Arkansas program permits students to qualify based on an index, with ACT
scores as low as 15 and cumulative high school grade point averages as low as
2.00. The acceptable minimum score to qualify for Louisiana's program is an ACT
of 18 or a high school cumulative grade point average of 2.25.
Louisiana's program covers the full cost of tuition at public institutions
for an annual average award of $2,120. Awards under the Arkansas program are
limited to a maximum of $1,000 annually.
We concur with Mr. Taylor that in comparing the number of students graduating
to those being awarded TAP, there is cause for concern.
Page 7
The Times-Picayune, July 15, 1994
The application form is not a factor retarding the program's growth.
Although we have an extensive outreach program, we are constantly exploring more
efficient ways of communicating with students and their parents.
In 1992, this agency created a child's storybook entitled, "I'm Going to
College.' For the last two school years, the storybook was distributed to every
third grade student in Louisiana.
Every year, at nine locations throughout the state, this agency conducts
financial aid workshops for high school counselors and seminars for students and
parents. The parent seminars are publicized through paid advertisements in local
newspapers and by public service announcements on local radio and TV stations.
This summer, we will inaugurate a pilot program called "Trailblazers," which
involves training selected students as peer tutors to assist high school
counselors in disseminating information about college aid programs and
procedures.
If students are to realize the program's promise of a college education, not
only must they be informed of the program, they must be encouraged by parents
and counselors. Perhaps focusing our effort here will produce the positive
results we all want to see.
For more information about our financial aid programs or procedures, one may
contact our Client Services representatives at 1-800-259-5626, ext. 1012.
Jack L. Guinn
Executive Director,
Office of Student
Financial Assistance,
State of Louisiana
LANGUAGE: ENGLISH
LOAD-DATE: July 16, 1994
Page 8
4TH STORY of Level 1 printed in FULL format.
Copyright 1994, The Commercial Appeal
The Commercial Appeal (Memphis)
June 4, 1994, Saturday, First Edition
SECTION: METRO, Pg. 1B,
LENGTH: 452 words
HEADLINE: Governor helps push school aid for blacks
Ark. offering $ 9.5 million
BYLINE: By James Jefferson, The Associated Press
DATELINE: LITTLE ROCK
BODY:
- The governor and higher education officials announced a new
campaign Friday to get more black students to apply for millions of
dollars in scholarship money available from the state.
The Higher Education Department will award about $ 9.5 million in
college aid this year and $ 11.2 million next year to Arkansas college
students, about half of it earmarked for students pursuing degrees in
education.
Last year, black students made up 17 percent of the state's
college population but got only 14 percent of state aid, Gov. Jim Guy
Tucker said.
The opportunity to have access to scholarship money is a
precious opportunity,' Tucker said. ''It is particularly important
within the minority community that those who want to go to college and
might be able to do so if they just had a little extra money be made
aware of the availability of that scholarship money
The campaign involves a statewide effort to get the word out about
scholarship programs on billboards, radio interviews and public
service announcements, newspaper advertisements and other outlets
serving the black community. The campaign also will including a
toll-free number - 1-800-54-STUDY - for students or their families to
call for more information.
''We want to take every affirmative step that we can by going to
places where we know minority students are going to be listening,
where they live, to get the word into those homes, both to their
parents and to them as well, Higher Education director Diana
Gilliland said.
One major program for which high school seniors still may apply is
the Arkansas Academic Challenge Scholarship. College-bound education
students who complete a college preparatory core curriculum in high
Page 9
The Commercial Appeal, June 4, 1994
school with a 2.25 grade-point average and pledge to be drug free may
be eligible for scholarships of up to $ 1,000 a year for four years.
The deadline to apply is Oct. 1.
Students also may apply by June 15 for the Paul Douglas Teaching
Scholarship, which provides up to $ 5,000 a year for four years for
academically qualified education students who agree stay in Arkansas
to fill teaching shortages in math, science and other subjects.
Other scholarships are available to dependents of servicemen who
were killed, held prisonor or listed as missing in action in Vietnam;
and dependents of law enforcement officers killed in the line of duty.
''We need the skills of every single citizen of our state, and we
have a moral obligation to help every Arkansan to reach his or her
full potential, I said Pat Gray, vice chairman of the state Board of
Higher Education.
LOAD-DATE: July 9, 1994
Page 10
6TH STORY of Level 1 printed in FULL format.
Copyright 1991, The Commercial Appeal
The Commercial Appeal (Memphis)
July 13, 1991, Saturday, TENNESSEE EDITION
SECTION: NEWS, Pg. A10
LENGTH: 294 words
HEADLINE: 250 ARK. STUDENTS TO GET AID NOTICES THIS WEEKEND
BYLINE: Joan I. Duffy; The Commercial Appeal; Little Rock Bureau
DATELINE: LITTLE ROCK
BODY:
The first 250 Arkansas high school graduates who qualify for the state's new
$ 1,000 scholarship program will receive their letters of notification this
weekend, Gov. Bill Clinton's office said Friday.
The Arkansas Academic Challenge Scholarships, approved during the 1991
legislative session and funded in part with a .5 percent increase in sales
taxes, offer annual $ 1,000 scholarships to children from low- and middle-class
families. The legislature allocated $ 4 million for the program this year and
$ 7 million next year.
Based on a similar full scholarship program in effect in Louisiana, the
program requires students to have a 2.5 grade point average in core curriculum
high school classes, score at least a 19 on the American College Test and enroll
in an Arkansas college. The applicants also must be drug-free and pledge to
refrain from the use of illegal substances.
Clinton touted the program to the legislature, saying too many qualified
students fail to go to college because of financial barriers.
'We need more of our young people going to college and we need them to
succeed and stay in college, Clinton said in a statement. This program will
help us accomplish that goal
The money is made available to qualified students in one-child families with
incomes of $ 30,000 or less. Income limits can rise by $ 5,000 for each
additional child in the family.
The Department of Higher Education mailed the notices to 250 qualified
winners and said another 400 applicants will be asked to supply additional
information before their requests can be processed. Clinton's office said
another 485 students who have applied for the money will become eligible if they
complete the courses required within the next two years.
LOAD-DATE: January 29, 1996
Page 11
7TH STORY of Level 1 printed in FULL format.
Copyright 1991, The Commercial Appeal
The Commercial Appeal (Memphis)
April 7, 1991, Sunday, FINAL EDITION
SECTION: NEWS, Pg. All
LENGTH: 779 words
HEADLINE: 709 MEASURES BECOME NEW LAWS IN ARKANSAS
BYLINE: Joan I. Duffy; The Commercial Appeal; Little Rock Bureau
DATELINE: LITTLE ROCK
BODY:
Of the 2,866 bills introduced in the 1991 Arkansas legislative session, 709
became new laws. Here is a rundown of the major ones:
EDUCATION
Restructuring: Directs state Board of Education to determine what Arkansas
schools must do to meet the National Education Goals and provides $ 200,000 in
grants to schools pursuing restructuring; Act 236 by Sens. Stanley Russ (D-
Conway) and David Malone (D-Fayetteville) .
Creation of model rural school; Authorized in 1989 session by an act
sponsored by Rep. Bynum Gibson (D-Dermott), funding for school included in
Educational Trust Fund, Act 10 by the Joint Budget Committee.
Readiness for School: Arkansas Better Chance preschool program for 3- and
4-year-olds from educationally or economically deprived homes; Act 212 sponsored
by Rep. Ernest Cunningham (D-Helena).
Student Achievement: Arkansas Academic Challenge Scholarships for students
from low- and middle-income families with B averages; Act 352 by Sen. Jerry
Bookout (D-Jonesboro) and Rep. John Lipton (D-Warren).
Creation of Arkansas School for Math and Science, a residential high school
for gifted students; Act 259 by Sen. Charlie Cole Chaffin (D-Benton).
Compulsory attendance, raising age required for school attendance from 16 to
17. Act 320 by Sen. Steve Bell (D-Batesville) and Rep. Jodie Mahony (D-El
Dorado)
Requiring high school diploma or regular attendance in high school to obtain
driver's license; Act 831 by Rep. Jodie Mahony (D-El Dorado).
Parental Involvement: Public School Choice Act allowing students to cross
district lines to attend school of choice; Act 284 by Rep. Wanda Northcutt (D-
Stuttgart) and Sen. Wayne Dowd (D-Texarkana).
Page 12
The Commercial Appeal, April 7, 1991
Teaching Improvements: Pay raises for public school teachers averaging $
4,000 a year and paid for with half-percent increase in state sales taxes; Act
10 by the Joint Budget Committee.
Financial assistance for professionals participating in alternative teacher
certification programs; Act 308 by Rep. Wanda Northcutt (D-Stuttgart).
Vocational-Technical Training: Creation of technical colleges; bill by Sens.
Allen Gordon (D-Morrilton) and Nick Wilson (D-Pocahontas) awaiting governor's
signature.
Establishment of apprenticeship programs with the help of state grants to
bridge the gap between the classroom and the workplace; Act 553 by Rep. Carolyn
Pollan (R-Fort Smith).
TAXES
Tax increases: Half-cent increase in retail sales taxes and imposing the tax
on used-car sales to finance educational improvements; Act 3 by Sen. Clarence
Bell (D-Parkin).
Two cents a gallon increase in diesel, five cents increase in gasoline fuel
taxes to finance $ 2.4 billion road construction program; Act 382 by Sen. Jack
Gibson (D-Boydell)
Four cents per gallon increase in diesel fuel taxes to offset repeal of
weight-distance tax; Act 219 by Rep. Louis McJunkin (D-Springdale).
One cent per pack increase in cigarette taxes to finance $ 3 million a year
in transportation and meal programs for elderly; bill by Rep. John Miller (D-
Melbourne) awaiting governor's signature.
Tax on Medicaid reimbursements to providers to generate $ 60 million for a
Medicaid Rebate Trustfund that will be used as state match for more federal
Medicaid dollars; bill by Rep. John Lipton (D-Warren) awaiting governor's
signature.
Half-percent increase in corporate income taxes to finance overhaul of
vocational education system; bill by Sens. Allen Gordon (D-Morrilton) and Nick
Wilson (D-Pocahontas) awaiting governor's signature.
Tax Breaks: Removes working poor from income tax rolls; Act 95 by Rep. Ernest
Cunningham (D-Helena).
HUMAN SERVICES
Safety and Security: Mandatory seatbelts in front seats of passenger
vehicles; Act 562 by Sens. Travis Miles (R-Fort Smith) and Jay Bradford (D- Pine
Bluff).
Domestic Abuse Act giving victims of family violence a quick and easy avenue
to remove the abuser from the family home; Acts 266, 267 and 268 by Sen. Jay
Bradford (D-Pine Bluff).
Personal Responsibility: Places father's Social Security number on child's
Page 13
The Commercial Appeal, April 7, 1991
birth certificate, enabling the state to track down and garnishee wages of
non-supporting fathers; Act 474 by Rep. Jodie Mahony (D-El Dorado)
Allows state to deduct health care coverage premiums from earnings of
noncustodial parent ordered by court to provide health care coverage for child;
Act 368 by Mahony.
ENVIRONMENT
Solid Waste Management: Landfill Trust Fund establishes per ton fee on trash
disposal to pay for closure of unlicensed land fill; Act 747 by Rep. Bynum
Gibson (D-Dermott).
Recycling tax credit for businesses established to recycle trash into
marketable products; Act 748 by Gibson.
LOAD-DATE: January 26, 1996
Page 14
8TH STORY of Level 1 printed in FULL format.
Copyright 1991 PR Newswire Association, Inc.
PR Newswire
March 5, 1991, Tuesday
SECTION: State and Regional News
DISTRIBUTION: TO CITY, STATE AND EDUCATION EDITORS
LENGTH: 273 words
HEADLINE: ARKANSAS GOVERNOR SIGNS 'TAYLOR PLAN' LAW
DATELINE: NEW ORLEANS, March 5
BODY:
Arkansas will join five other states this morning when Gov. Bill Clinton
signs a new college tuition assistance program into law in Little Rock.
Called the "Arkansas Academic Challenge Scholarships," the measure was
modeled after a Louisiana tuition assistance law which was initiated by New
Orleans oilman Patrick F. Taylor. Last year Texas, Florida, Indiana and New
Mexico passed similar measures.
The legislation (HB 1501) assists academically qualified high school
graduates from low and middle income families with publlic or private college
tuitions. Students must earn a 2.5 grade point average on a 4.0 scale, score a
19 on the American College Test (ACT) and take a normal college preparatory
course schedule in high school. For families with one dependent child, income
cannot exceed $30,000 per year; with two dependents, income cannot exceed
$35,000 and so on.
The law becomes effective this fall. In Louisiana, more than 1,300 students
are enrolled in public colleges or universities under the Taylor Plan.
Ninety-five percent of the first class of freshmen (who enrolled in the fall of
1989) passed to their sophomore year. Even if only 80 percent graduate, it will
more than double Louisiana's average public college graduation rates.
Similar legislation is in the works in North Carolina, Maryland, Ohio,
Georgia, Alabama, Mississippi and Oklahoma. Another six states have indicated
an interest in introducing legislation when their sessions convene this year.
CONTACT: Kathi Schroeder of Taylor Energy, 504-593-8582, or Susie Whitacre of
the Arkansas Governor's Office, 501-682-3614
LANGUAGE: ENGLISH
LOAD-DATE: 030591 AT005
Clinton Presidential Records
Digital Records Marker
This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies the place of a tabbed divider. Given our
digitization capabilities, we are sometimes unable to adequately
scan such dividers. The title from the original document is
indicated below.
Louisiana
Divider Title:
Page 16
6TH STORY of Level 1 printed in FULL format.
Copyright 1996 The Times-Picayune Publishing Co.
The Times-Picayune
January 11, 1996 Thursday, KENNER
SECTION: PICAYUNE; Pg. 1D1
LENGTH: 514 words
HEADLINE: SCHOLARSHIPS ARE UP FOR GRABS
BYLINE: By SANDRA BARBIER West Bank bureau
BODY:
January is the start of the scholarship application season.
More than 7,500 Louisiana students will benefit this school year from state
scholarship and grant programs, said Deborah Paul, client services manager for
the state Office of Student Financial Assistance. The application period for
state programs for the 1996-97 academic year began Jan. 1.
To be considered for the state's financial aid programs, high school seniors
need only complete and return the federal student aid application forms, she
said. For consideration for state programs, they must have a return postmark no
later than March 15, she said.
Forms are available in school counselors' offices, or by calling the state
student assistance office at 1-800-259-LOAN, or the federal information center
at 1-800-4-FED-AID. Hearing-impaired students can call the federal office at
1-800-730-8913.
The state has five scholarship and assistance programs, Paul said. Following
is a list of the programs and the features of each:
The Louisiana Tuition Assistance Plan, formerly called the Taylor Plan,
provides free tuition to any state university or college for students meeting
academic and need requirements. About 2,400 students received the aid for the
1995-96 school year.
The Louisiana Honors Scholarship is a full-tuition scholarship available to
students in the top 5 percent of their graduating class. It pays full tuition at
any state school, and the equivalent of the highest state tuition in payment of
any private university's tuition.
Paul said 3,400 students received the scholarship during the current school
year.
The Louisiana State Student Incentive Grant is awarded through state
universities, colleges and vocational schools, and averages $700 per student.
Financing is limited and students must meet academic and need requirements.
Schools can add criteria as well.
Page 17
The Times-Picayune, January 11, 1996
There is about $2 million in this program, Paul said.
The T.H. Harris Scholarship provides $400 per year based on merit, with a
minimum 3.0 grade-point average. The fund is limited, SO the scholarship is
competitive, Paul said. The fund contains $600,000 this year.
The Rockefeller State Wildlife Scholarship is a scholarship of $1,000 per
year offered to students majoring in wildlife, fisheries or forestry science.
It, too, has limited financing and has academic criteria. Of the 66 people
applying for new scholarships this year, 16 were granted, Paul said. A total of
60 scholarships - new and continuing - were awarded.
Students and their parents who want to learn more about the state's programs
can attend a free seminar Jan. 30 at the University of New Orleans. The seminar
begins at 6:30 p.m. and will be held in the Student Union. Several state
colleges and universities will have booths with information about aid and
applications, Paul said.
Earlier that day, the agency is sponsoring a seminar for guidance counselors
at the New Orleans Sheraton North in Metairie. Counselors interested in
attending can call the state at the "800" number and ask for Ext. 1012, Paul
said.
LANGUAGE: ENGLISH
LOAD-DATE: January 12, 1996
Page 18
DATE: JUNE 1, 1996
CLIENT:
LIBRARY: NEWS
FILE: ALLNWS
YOUR SEARCH REQUEST IS:
LOUISIANA TUITION ASSISTANCE
NUMBER OF STORIES FOUND WITH YOUR REQUEST THROUGH:
LEVEL 1...
22
Page 19
5TH STORY of Level 1 printed in FULL format.
Copyright 1995 The Times-Picayune Publishing Co.
The Times-Picayune
May 9, 1995 Tuesday, THIRD
SECTION: METRO; Pg. B6
LENGTH: 504 words
HEADLINE: HELPING STUDENTS AIM HIGH
BODY:
The Louisiana Legislature opened the door to college for students from poor
and middle-income families when it adopted the Louisiana Tuition Assistance plan
in 1989, but six years later, too few students have walked through that door.
The numbers have been particularly disappointing in New Orleans, with only
219 students receiving the grants in the past four years.
Adopted at the urging of millionaire oilman Pat Taylor, the plan provides
free tuition and fees to academically qualified students who attend a Louisiana
public college of their choice.
The plan intentionally sets fairly high academic standards. The idea is to
see that students graduate from college, not simply that they make a stab at
attending, Mr. Taylor has said. Young people must complete 17.5 units of
college-preparatory courses, score 20 out of 36 on the American College Test and
graduate from high schools with a 2.5 grade point average.
Although the requirements may be responsible in part for the lackluster
numbers, relaxing them would send the wrong message to young people who are
aiming higher in their educational goals.
Other factors that have discouraged participation can be addressed, however.
Mr. Taylor has bemoaned the lack of communication about the plan in schools,
saying that students don't learn about it early enough in their high school
careers.
While serious college-bound students need to keep their grade point averages
up and select the right courses, those who don't know about the opportunity
available to them might not choose to study hard and take challenging courses.
"And schools aren't pushing it like they should," Mr. Taylor said. "Children
need to know about it in elementary school, as soon as possible.'
The Orleans Parish School Board has taken that criticism to heart and now
intends to promote the Taylor Plan system-wide. The School Board adopted a
resolution requiring guidance counselors to develop ways to promote the program
among students beginning at the earliest grades.
Some proposed changes in the plan that are before the Legislature would help
to put a bigger welcome mat at the door for students. The Senate passed a bill
Page 20
The Times-Picayune, May 9, 1995
last week that relaxes family income eligibility to include more students. It
also lowers the college performance standard for underclassmen from a 2.5 grade
point average to a 2.1 average for freshmen and a 2.3 average for sophomores.
The reasoning is that the first two years of college tend to be more difficult,
and experience showed that some students were eliminated from the Taylor Plan
during those tough first semesters.
When the Taylor Plan was first adopted, it was hailed as a profound change in
the state's education system. While the program has not yet lived up to that
promise, the potential remains. The Legislature and the Orleans public school
system seem willing to do their part.
But they can only do SO much to keep the door open. It will be up to parents
and the students themselves to walk in.
LANGUAGE: ENGLISH
LOAD-DATE: May 18, 1995
Page 21
6TH STORY of Level 1 printed in FULL format.
Copyright 1995 The Times-Picayune Publishing Co.
The Times-Picayune
May 8, 1995 Monday, THIRD
SECTION: METRO; Pg. B1
LENGTH: 1058 words
HEADLINE: FEW STUDENTS UTILIZING TAYLOR PLAN;
REQUIREMENTS PART OF PROBLEM
BYLINE: By RHONDA NABONNE Staff writer
BODY:
Doors to broader horizons sprang open for Chentrell Comeaux in 1989.
That year, the Louisiana Legislature adopted a plan offering free college
tuition to qualified high school graduates from low- and moderate-income
families.
Comeaux, fresh out of McMain Magnet School in New Orleans, was among the
first to cash in on the opportunity.
What became known as the Taylor Plan was like "open sesame" for Comeaux, who
was in a quandary after turning down a full-tuition scholarship to study
aeronautical engineering at the University of Hawaii because her parents
couldn't afford to cover her travel and living expenses.
On Saturday, Comeaux, a 22-year-old with a sunny disposition who aspires to
be a doctor, will graduate from Southern University at New Orleans with a
biology degree and gratitude for the Taylor Plan.
"It gave me a chance," Comeaux said. "Sometimes I wonder if I would have gone
to college. I hope other students find out how it can fulfill their dreams." "
That's Pat Taylor's wish too. He single-handedly pushed the free college
tuition concept through the Legislature. A New Orleans millionaire oilman who
left his impoverished home in east Texas at age 16, Taylor wanted to give
students the same chance to go to college that he had.
But even with success stories like Comeaux's, Taylor is dismayed: The
nationally recognized plan is falling short of his anticipation of reaching
significant numbers of students, particularly in Orleans Parish.
Out of 12,000 high school graduates in Orleans Parish in the past four years,
just 219 have received the grants, records show.
"That's a tragedy," Taylor said. "It's absolutely sickening.'
Statewide, 2,278 students are recipients of what's officially known as the
Louisiana Tuition Assistance Plan (TAP), which waives the cost of attending
Page 22
The Times-Picayune, May 8, 1995
public colleges and universities in Louisiana for state high school graduates
who qualify.
Jefferson Parish has the largest number of participants 222, a few more
than Orleans.
Arkansas, one of a dozen other states that have adopted the concept, gets
twice as many applicants as Louisiana.
Taylor argues that Louisiana students aren't learning about the TAP program
soon enough. "And schools aren't pushing it like they should," he said.
"Children need to know about it in elementary school, as soon as possible."
But other factors also have worked to keep the number of recipients down in
Orleans and elsewhere.
Jane Brown, program specialist for guidance and counseling in Orleans Parish
schools, said the Taylor Plan has requirements that could be forcing some
students to look the other way.
While the average ACT score in Orleans has been 17.5, the Taylor Plan demands
a score of 20.
The Taylor Plan also excludes students who've gotten into trouble with the
law.
"There might be a few kids who've gotten into trouble and cleaned up their
life," she said.
Brown said couselors beef up their efforts to draw more students' attention
to the Taylor plan, but they need more cooperation from parents and others to
get students to fulfill commitments.
"Sometimes kids get to the last two years (of high school) and don't want to
take hard courses," she said. "Sometimes it's more important for them to just
get out of high school."
In other cases, Thomas said, the Taylor Plan is competing with other offers.
"About 50 to 60 percent of Orleans high school seniors go to college, and
they're having other options," Thomas said.
Every year the school system receives at least $5 million in scholarship
offers from universities and organizations.
Students who take advantage of the Taylor Plan can qualify for federal Pell
Grants to help pay for room and board, as well as assistance from the Project
New Orleans Foundation, financed by 17 New Orleans businesses to help students
cover personal expenses.
Just as Taylor worked zealously to get lawmakers to approve his idea, he's
now working to get more students to take advantage of the program.
In March, Taylor appealed to the Orleans Parish School Board and got a
commitment that it will promote the Taylor Plan system-wide, as early as
Page 23
The Times-Picayune, May 8, 1995
pre-kindergarten.
"Posters will be put in every classroom in this city," said Taylor, a
graduate of Louisiana State University. "Every teacher is going to have to talk
about this opportunity and constantly push and reassure students that every kid
has a chance to go to college."
In a resolution adopted by board officials, school system guidance counselors
will be required to develop ways to spread the word among students, beginning in
the earliest grades.
Thanks to Taylor's tenacity, a proposal to make the state's program more
attractive also is working its way through the Legislature.
On Wednesday, the Senate unanimously passed a bill that would provide several
improvements including:
Lowering the family income eligibility limitation to include more students.
Family income would also be removed from the list of requirements after an
applicant is enrolled. Some Taylor Plan recipients have had to drop out because
their parents got pay raises.
Lowering the college performance standard from 2.5 to 2.1 for the freshmen
year and to 2.3 for sophomores. The 2.5 standard would remain for juniors and
seniors. Some students have been eliminated from the Taylor Plan because they
fell short of the requirement during the first, most difficult, years of
college.
Chentrell Comeaux has had compelling reasons to quit.
She was widowed last year, she said, left to raise a child alone after her
husband was murdered.
Though her life has been a juggling act - getting her 2-year-old son off to
pre-school, working part-time as a dental assistant and carrying a heavy
academic load at SUNO - Comeaux has maintained at least a 3.0 grade-point
average.
She also was one of three students selected to spend last summer studying at
a research lab in Argonne, Ill.
Comeaux's perseverance runs in her family. When she gets her college degree,
Julia Comeaux will be looking on as a proud mother - but she'll be wearing a
mortarboard too.
Julia, who growing up never thought of herself as college material, will
graduate alongside her daughter.
But Julia thinks her daughter deserves all the spotlight.
"I'm so proud of her, it's unreal, her mother said.
GRAPHIC: Chentrel Comeau listens to a lecture in political science class at
Southern University in New Orleans. Comeau, who graduates this month, is one of
the few Taylor Plan students meeting the requirements for its free tutition and
Page 24
The Times-Picayune, May 8, 1995
other benefits. [COLOR] STAFF PHOTO BY BRYAN S. BERTEAUX
LANGUAGE: ENGLISH
COLUMN: OUR SCHOOLS OUR FUTURE
LOAD-DATE: May 9, 1995
Page 25
13TH STORY of Level 1 printed in FULL format.
Copyright 1994 The Times-Picayune Publishing Co.
The Times-Picayune
June 24, 1994 Friday, THIRD
SECTION: METRO; Pg. B2
LENGTH: 452 words
HEADLINE: OILMAN WANTS MORE STUDENTS TO APPLY FOR FREE COLLEGE GRANTS
BYLINE: By SUSAN SAULNY Staff writer
BODY: Like a general with an undying resolve for victory, New Orleans oilman Pat
Taylor wants to make a college education available to every academically
qualified child.
In 1989, the highly publicized Taylor plan, which guaranteed qualified and
needy students tuition-free educations, became Louisianan law. A powerful and
innovative idea, lawmakers around the country took note of the Taylor plan's
success in Louisiana. Today, the program is thriving in 10 other states.
But locally, something unsettling has happened in the past four years, and
Taylor is not pleased. The money is there, but few students are stepping forward
to claim it.
"I stand here sad, disappointed and angry," Taylor said Thursday at a
convocation and luncheon sponsored by the Project New Orleans Foundation. The
foundation, which is financed by 17 New Orleans businesses, provides grants to
students who qualify for the Taylor Plan and federal Pell grants.
The reasons for Taylor's dismay are mathematical and clear.
Approximately 5,000 public and private high school students graduated in
Orleans Parish this year. of that number, 137 received money through the
Louisiana Tuition Assistance Plan, the official name of the Taylor plan. More
than 120 also qualified for Pell grants and received Project New Orleans
assistance.
Arkansas, a state that emulated the Taylor plan, has twice the number of
students enrolled, Taylor said.
"Counselors could be of the greatest help in notifying students of these
opportunities. In that respect, my counselor was deficient," grant recipient
Nicholas Van Norman said.
Benjamin Franklin High School graduate Alexander Ducros echoed the same
sentiment. "I was never made aware that I was eligible for the Taylor plan."
The students didn't find out about the plan until their sophomore year in
college.
Page 25
13TH STORY of Level 1 printed in FULL format.
Copyright 1994 The Times-Picayune Publishing Co.
The Times-Picayune
June 24, 1994 Friday, THIRD
SECTION: METRO; Pg. B2
LENGTH: 452 words
HEADLINE: OILMAN WANTS MORE STUDENTS TO APPLY FOR FREE COLLEGE GRANTS
BYLINE: By SUSAN SAULNY Staff writer
BODY:
Like a general with an undying resolve for victory, New Orleans oilman Pat
Taylor wants to make a college education available to every academically
qualified child.
In 1989, the highly publicized Taylor plan, which guaranteed qualified and
needy students tuition-free educations, became Louisianan law. A powerful and
innovative idea, lawmakers around the country took note of the Taylor plan's
success in Louisiana. Today, the program is thriving in 10 other states.
But locally, something unsettling has happened in the past four years, and
Taylor is not pleased. The money is there, but few students are stepping forward
to claim it.
"I stand here sad, disappointed and angry," Taylor said Thursday at a
convocation and luncheon sponsored by the Project New Orleans Foundation. The
foundation, which is financed by 17 New Orleans businesses, provides grants to
students who qualify for the Taylor Plan and federal Pell grants.
The reasons for Taylor's dismay are mathematical and clear.
Approximately 5,000 public and private high school students graduated in
Orleans Parish this year. Of that number, 137 received money through the
Louisiana Tuition Assistance Plan, the official name of the Taylor plan. More
than 120 also qualified for Pell grants and received Project New Orleans
assistance.
Arkansas, a state that emulated the Taylor plan, has twice the number of
students enrolled, Taylor said.
"Counselors could be of the greatest help in notifying students of these
opportunities. In that respect, my counselor was deficient,' grant recipient
Nicholas Van Norman said.
Benjamin Franklin High School graduate Alexander Ducros echoed the same
sentiment. "I was never made aware that I was eligible for the Taylor plan."
The students didn't find out about the plan until their sophomore year in
college.
Page 26
The Times-Picayune, June 24, 1994
But counselors cite other reasons for the lack of participation, including
long application forms and miscommunication. Taylor said Arkansas has a
one-page application while Louisiana's is four pages with 12 pages of
instructions. "If you can fill out that application, you don't need a college
education,' he said.
Taylor said he hopes Thursday's luncheon will help students to believe by
generating publicity. "By recognized them, their younger peers will know of
their success, and emulate them, Taylor said.
Eligibility requirements for the Taylor plan include a 2.5 minimum cumulative
grade point average, a college preparatory curriculum, and an ACT score of 20 or
higher.
Families also must demonstrate a financial need by having a two-year average
adjusted gross income of less than $25,000. ($5,000 is added for each additional
minor child).
LANGUAGE: ENGLISH
LOAD-DATE: June 25, 1994
Page 27
17TH STORY of Level 1 printed in FULL format.
Copyright 1993 The Times-Picayune Publishing Co.
The Times-Picayune
August 20, 1993 Friday, THIRD
SECTION: MONEY; Pg. C1
LENGTH: 589 words
HEADLINE: FREE TUITION PLAN NEEDS MONEY
BYLINE: By VICKI HYMAN Staff writer
BODY:
Incoming college freshmen eligible for a tuition-paid state scholarship
program may have to wait until school starts to find out if they indeed have a
free ride.
The state Legislature did not approve additional money for the Louisiana
Tuition Assistance Program (TAP) for the 1993-94 school year to pay for all
newly eligible students, said Jack Guinn, executive director of the Louisiana
Student Financial Assistance Commission, which administers the program.
But commission members could decide to pay for all eligible TAP students for
the fall semester at an emergency meeting called for Tuesday. Guinn acknowledged
that covering the fall semester could cause a shortage in the spring.
But he said that Gov. Edwards and state legislators have vowed to find the
money by then.
Calling the shortage "just a glitch, New Orleans oilman Patrick Taylor, who
developed and pushed the program through the Legislature in 1989, said that
state university administrators have said they will allow TAP students to
register without tuition payment.
Guinn said TAP's budget will pay for only 40 percent of the tuition costs for
the freshman class, though it has the money to continue paying for students
already in the program.
Guinn said that program officials are waiting to see how many continuing
students they will have to cover. Students who do not maintain a 2.5 grade point
average or enroll for a full course load are no longer eligible for the program.
Their money will go to newly eligible students, Guinn said.
The commission won't know who is eligible until the second week in September,
after students register.
To qualify for TAP, students have to score at least a 20 out of 36 on the
American College Testing assessment, or ACT, maintain a C-plus high school grade
point average in college preparatory classes, and have a clean record.
Families with incomes of $25,000, $30,000 and $35,000 qualify if they they
Page 28
The Times-Picayune, August 20, 1993
have one, two or at least three children, respectively.
Alternative tuition sources include school-sponsored financial aid and the
state's student loan program, Guinn said.
Because the tuition payment alone is not enough to ensure college opportunity
for many low-income students, they are already seeking other money, Taylor said.
Guinn said that budget priorities blocked money from TAP, which is reaching
its maximum funding - excluding tuition increases and inflation - of $5 million
this year. The program pays tuition through five years, and this is the fifth
year of the program.
In the 1992-93 school year, 1,739 students were fully funded through TAP.
For the 1993-1994 year, 1,063 continuing students are potentially eligible for
the full award, but there are 977 newly eligible students, and only $847,000 to
pay their tuition - about 40 percent of the total need. A request for an
additional $1.7 million was not approved by the Legislature.
The question of cost has plagued the program since its inception.
When nearly 1,000 freshmen entering Louisiana colleges in August 1989 applied
for the brand-new plan, the state hadn't yet appropriated money.
Taylor stressed the need to get a permanent source of financing. Students
need to know that if they've worked hard, they'll earn a college education, he
said. "We can't be having this year-to-year question raised all the time.'
Taylor said he would continue to appeal to legislators and university
administrators. "The promise to these students will be honored," he said. "We
will find a way. "
LANGUAGE: ENGLISH
LOAD-DATE: August 21, 1993
Page 29
20TH STORY of Level 1 printed in FULL format.
Copyright 1992 American Political Network, Inc.
Daily Report Card
June 9, 1992
SECTION: GOAL TWO: HIGH SCHOOL COMPLETION
LENGTH: 299 words
HEADLINE: HELP AFTER GRADUATION: LOUISIANA'S TUITION ASSISTANCE PLAN
BODY:
LA's Tuition Assistance Plan has been available statewide
for three years, but fewer students have qualified than state
lawmakers expected when they drafted the plan. Just two out of
every 100 H.S. students in LA has enrolled (Coleman Warner, New
Orleans TIMES-PICAYUNE) Nonetheless, the plan, which helps only
poor and some middle-income families, is in no immediate danger
of cuts, because officials say awareness of the plan is
increasing.
Tuition assistance unofficially began four years ago when
oil executive Pat Taylor offered to pay for college for any
seventh- or eight-grader at Livingston Middle School who stayed
in school, stayed out of trouble and made good grades. Only one
student of the original 83 was eligible to claim Taylor's offer,
but 39 have graduated, three still have courses to complete and
one left school for the military (Coleman Warner, TIMES-
PICAYUNE)
The following year Taylor lobbied the LA Legislature to
create a statewide fund, and today 1,447 students are enrolled in
the Tuition Assistance program, but only those who keep up grades
and stay out of trouble are eligible for scholarships from the
fund. Taylor is concerned that only $2. 9M has been dispersed
about half of what he expected. But LA officials expect 1,000
students to enter the program this fall, because more kids are
learning about the program's requirements. Taylor has
considered pushing for less stringent prerequisites for the
students such as lowering the required grade point average
from 2.5 (on a 4.0 scale) to 2.0 -- but he says "he fears pushing
for changes in the law -- is sure to increase its cost when
legislators face a state budget deficit." (both cites 6/7)
LANGUAGE: ENGLISH
LOAD-DATE: June 9, 1992
Clinton Presidential Records
Digital Records Marker
This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies the place of a tabbed divider. Given our
digitization capabilities, we are sometimes unable to adequately
scan such dividers. The title from the original document is
indicated below.
Other State Programs
Divider Title:
11 '96 11:13AM OFFICE OF SECRETARY
P.2
JUN-10-98 nun 20.01
AMERICA OF
UNITED STATES DEPARTMENT OF EDUCATION
OFFICE OF POSTSECONDARY EDUCATION
UNITED STATES OF
THE ASSISTANT SECRETARY
TO:
Leslie Thornton
FROM:
David A. Longanecker
RE:
State Administered Grant Program data
for
DATE:
June 10, 1996
Attached are the examples of some of the state administered grant programs that currently exist.
In each of these programs, I have collected general background data that include a brief
description, eligibility requirements and/or award levels. In some cases, I have added additional
legislative history and anecdotal information.
400 MARYLAND AVE.. S.W. WASHINGTON. D.C. 20202-5100
JUN-10-96
MON
20:01
OF
SECRETARY
P.3
ARKANSAS
Academic Challenge Program
Based upon the Taylor scholarship concept. this program passed the Arkansas state
legislarure in 1991. The Arkansas Academic Scholarship Program is a guaranteed
college scholarship plan to promote academic achievement and encourage academically
prepared Arkansas high school graduates to enroll in the state's colleges and universities.
The scholarship provides annually the lesser of $1500 or the annual tuition and is
renewable for up to three more years provided the student meets the continuing eligibility
standards established by the Arkansas Dept. of Higher Education. Awards are made based
on the applicant's meeting minimum standards with regard to the ACT composite score,
grade point average in the pre-collegiate core curriculum defined by the State Board of
Higher Education, and financial need.
# of students served: just over 10,000
Senate Bill 299: "Act 352 of 1991" had 18 cosponsors, all Democrats (Bookout,
Pagan, Malone, Chaffin, Wilson, Edwards, Lewellen, Howell, C. Bell. Moore. Jewel,
Dowd, Gordon, Hardin, Fitch, Bearden, Ross, Everett). House Bill 1501: "Act 362 of
1991" had four cosponsors, all Democrats (Lipton, Thurmond, Jones, Amold).
CALIFORNIA
Cal Grant A
Cal Grant A helps low- and middle income students with tuition/fee costs. Grant
recipients are selected on the basis of financial need and GPA. In 1995-96. maximum new
awards ranged up to $5,250 at independent schools and colleges, $3,799 at UC, and
$1,584 at CSU. The minimum course length is two academic years.
Cal Grant A qualifiers who attend a California Community College will have their
tuition/fee award reserved for up to two years until the student transfers to a tuition/fee
charging college. However, new recipients cannot transfer a community college reserve
award to a tuition/fee charging school during their first year as recipients.
CONNECTICUT
Scholastic Achievement Program
Scholastic Achievement Grant Program succeeded the Connecticut State Scholarship
Award in 1980. This program is a need-based with an academic screening component.
High school seniors qualify if they are in the top twenty percent of their class or if they
score above 1200 on SAT's.
JUN-10-96 MUN 20:01
P.4
Grantees receive up to $2,000 a year to be used at a Connecticut college or at colleges
located in states which have reciprocity agreements with Connecticut.
Finacted in 1981 as a Committee Bill. It has since served approximately 60,000 students.
GEORGIA
HOPE Scholarship Program
Helping Outstanding Pupils Educationally (HOPE) is Georgia's unique program that
rewards students' hard work with financial assistance in degree, diploma, or certificate
programs at any eligible Georgia public or private college. university. or technical
institute. More than 105,000 Georgians have benefitted from this program funded by the
Georgia Lottery for Education.
Eligibility requirements:
be a Georgia resident
be a 1993 or later high school graduate; and
earn a B average (a 3.0 cumulative GPA on a 4.0 scale for a college preparatory
curriculum, or a 3.2 average for any other curriculum track).
Students enrolled in a degree program at a Georgia public college or university are
eligible for financial assistance covering tuition, mandatory fee, and a book allowance.
Students enrolled in a private college in Georgia can receive $1,500 per year. Additional
HOPE assistance is available for GED recipients.
**Georgia's HOPE scholarship started with the Fall term of 1993. When Governor Zell
Miller ran for office he originated the idea of starting a Lottery in Georgia to fund this
scholarship. He was elected and the citizens of Georgia voted for the lortery. Some
churches and other groups opposed the lottery because they believe that gambling is
wrong.
ILLINOIS
Merit Scholarship Program (MRS)
The MRS provides a onc-time, $1,000 award (made in two payments) to qualified Illinois
high school students who rank in the top 5 percent of their class at the end of the seventh
semester. This scholarship can be used for payment of tuition, fees, and other educational
expenses at MAP (Monetary Award Program*) approved Illinois institutions. Financial
need is not a factor in determining MRS recipients. This scholarship does not count as a
financial resources in calculations for the need-based MAP grant; students may receive
JUN-10-JUN 11 '96 11:14AM OFFICE OF SECRETARY
P.5/07
both a MAP grant and an MRS award. This program is dependent upon funding from the
Illinois General Assembly.
Legislative History: HB 2400 (Sponsors: Bowman-DeAngelis) passed both Houses on
July 1, 1984. The original bill provided for a $250 flat grant and a $1250 need-based
grant to the top 5% of every high school for two years. The bill that passed the House
was a $1000 need-based grant to the top 5% for two years. The bill that passed the
Senate was & $500 flat grant to the top 5% for one year.
A conference committee was then appointed. The conference committee members were
Senators Rock, Egan, Jones, DeAngelis, Grotberg, and Representative Bowman,
Satterthwaite, Madigan, R. Dunn and Zwick.
*Monetary Award Program provides need-based grants 10 eligible undergraduate students who
are not required to submit high school grades or test scores when applying for o MAP grant,
INDIANA
Hoosier Scholar Award
Hoosier Scholar Award (P.L. 202, 1981) recognizes the achievement of Indiana high
school seniors and is funded through appropriations made by the Indiana General
Assembly. The $500 non-renewable scholarship is based upon academic merit and may be
used for any educational expense.
Eligibility requirements:
be a senior at an approved Indiana high school
be an Indiana resident
rank in the top 20 percent of his/her high school graduating class; and
plan to attend an eligible Indiana college or university as a full-time student.
There is no application process for the Hoosier Scholar Award. Additional selection
criteria and nominations are the responsibility of the high school.
IOWA
Iowa Tuition Grant Program
lows Tuition Grant Program was established in 1969 by the 63rd General Assembly of the
Legislature. The intent of this program is to close the gap between private vs. public
tuition for those students who attend private postsecondary institutions in Iowa. Any
Iowa resident currently enrolled, or planning to enroll, for at least three semester hours at
one of the eligible Iowa postsecondary institutions may apply.
SECRETARY
Awards range from $100 to $2,650. A grant may not exceed the difference between the
private college tuition and mandatory fees and the average tuition and fees at the three
public universities.
For 1994-95, approximately 14,000 students will be aided with an average full-year grant
of $2,250. Over 22,000 students are expected to meet the requirements and apply.
LOUISIANA
Tuition Assistance Plan
The Louisiana State Tuition Assistance Plan (TAP) was initiated in 1989 to provide
tuition to all needy, qualified, college-bound state residents. TAP targets academically
qualified students who demonstrate financial need and encourages them to pursue higher
education. For the 1995-96 academic year, this program has a budget of close to $5
million.
Legislative History: Senate Bill No. 280: "Act 789 of 1989" had 10 cosponsors
(Hainkel. Bares, Brinkhaus. McLeod. Picard, Saunders, Bagert, McPherson and Poston
and Representative Forster). It was amended as Senate Bill No. 84: "Act 269 of 1995"
with 8 cosponsors.
# of students served: 2600 students each year
MICHIGAN
Competitive Scholarships and Tuition Grants awards range from a minimum of $100 to a
maximum of:
a. the amount of demonstrated financial need,
b. the school's tuition,
C. the stated annual maximum amount established by the Michigan Higher Education
Assistance Authority (MHEAA) based upon available appropriations.
State Competitive Scholarship Program
Act 208 of the Public Acts of 1964, as Amended (approved May 22, 1964)
These scholarships are limited to students who are high school graduates or who are
favorably recommended by an appropriate educational institution, who achieve a
qualifying score on the ACT, and who demonstrate financial need. Students enrolled in a
program leading to a degree in theology, divinity, or religious education are ineligible for
the Competitive Scholarship. A recipient of this funding may not concurrently receive
state scholarship and tuition grant assistance.
20:03
SECRETARY
P.7
State Tuition Grant Program
Act 313 of the Public Acts of 1966, as Amended (approved August 1, 1996)
An Act to award tuition grants to resident students enrolled in private, nonprofit
institutions of higher learning; and to make an appropriation thereafter.
MISSOURI
Missouri Higher Education Academic Scholarship Program (Bright Flight)
The MHEAS Program targets high school seniors who score in the top 3 percentile on the
ACT or SAT. Initial academic scholarships are offered in the academic year immediately
following the student's senior year in high school. There is a maximum of $2,000
available per academic year for up to 10 semesters or until the achievement of an
undergraduate degree.
NEW MEXICO
New Mexico Scholars' Award Program
This program encourages New Mexico high school students to attend public or selected
private non-profit colleges in New Mexico before their 22nd birthday. The selected
private non-profit colleges are The College of Santa Fe. St. John's College in Santa Fe, or
the College of the Southwest.
The award is a scholarship for tuition, books, and fees and is based on availability of
funds. Applicants must have a combined family income of less than $30,000 per year. If
two or more family members are enrolled in a postsecondary institution, the combined
family income cannot exceed $40,000.
Eligibility requirements:
be a New Mexico resident who is an undergraduate attending any publictand
selected private non-profit postsecondary institutions in New Mexico who have
not yet turned 22; and
graduated in the top 5 percent of their high school class or have obtained a score
of 25 on the ACT or 1020 on the SAT.
06/03/96
17:13
202 456 7132
WHITE HOUSE/NEC
005/007
Examples of State-Administered Grant Programs with a Merit Component
California
Cal Grant A helps low- and middle-income students with tuition/fee costs. Grant recipients are
selected on the basis of financial need and grade point average. In 1995-96, maximum new
awards ranged up to $5,250 at independent schools and colleges, $3,799 at UC, and $1,584 at
CSU. The minimum course length is two academic years.
Cal Grant A qualifiers who attend a California Community College will have their tuition/fee
award reserved for up to two years until the student transfers to a tuition/fee charging college.
However, new recipients cannot transfer a community college reserve award to a tuition/fee
charging school during their first year as recipients.
Connecticut
The Scholastic Achievement Grant program is available to any Connecticut resident who is a
U.S. citizen or national, demonstrates financial need, and who is a high school senior or graduate
with a ranking in the top 20 percent of his or her class, or has an SAT score of at least 1,200.
Grantees receive up to $2,000 a year to be used at a Connecticut college or at colleges located in
states which have reciprocity agreements with Connecticut.
Georgia
Helping Outstanding Pupils Educationally (HOPE) is Georgia's unique program that rewards
students' hard work with financial assistance in degree, diploma, or certificate programs at any
eligible Georgia public or private college, university, or technical institute. More than 105,000
Georgians have benefitted from this program funded by the Georgia Lottery for Education.
Students enrolled in a degree program at a Georgia public college or university are eligible for
financial assistance covering tuition, mandatory fee, and a book allowance. Beginning this
school year (1995-96), all family income restrictions for HOPE eligibility have been removed.
The HOPE Scholarship Program has also been broadened to include eligible students already in
public college or those who wish to return to public college.
Students enrolled in a private college in Georgia can receive $1,500 per year plus a $1,000
Georgia Tuition Equalization Grant for a total of $2,500 per academic year. Students attending
any Georgia public technical institute can receive financial assistance for non-degree programs
regardless of grade point average. Additional HOPE assistance is available for GED recipients.
Eligibility Requirements:
be a Georgia resident;
be a 1993 or later high school graduate; and
earn a 'B' average (a 3.0 cumulative grade average on a 4.0 scale for college preparatory
curriculum, or a 3.2 average for any other curriculum track).
Students may renew the scholarship for their sophomore, junior, and senior years, but must:
maintain a 3.0 cumulative grade average;
06/03/96
17:13
202 456 7132
WHITE HOUSE/NEC
006/007
reapply for the scholarship by completing the Free Application for Federal Student Aid
(FAFSA); and
be making satisfactory academic progress.
Illinois
The Merit Recognition Scholarship (MRS) Program provides a one-time, $1,000 award (made in
two payments) to qualified Illinois high school students who rank in the top S percent of their
class at the end of the seventh semester. This scholarship can be used for payment of tuition,
fees, and other educational expenses at MAP'-approved Illinois institutions. Financial need is
not a factor in determining MRS recipients. This scholarship does not count as a financial
resource in calculations for the need-based MAP grant; students may receive both a MAP grant
and an MRS award. This program is dependent upon funding each year from the Illinois General
Assembly. Only students who, based on funding levels, are reasonably assured of receiving the
grant will be notified of the award.
Eligibility requirements:
be a U.S. citizen or an eligible noncitizen;
be a resident of Illinois;
rank in the top 5 percent of the Illinois high school class according to the cumulative
Grade Point Average (GPA) at the end of the seventh semester;
attend a MAP-approved Illinois postsecondary institution as an undergraduate on at least
a half-time basis or attend one of the nation's four Military Service Academies;
comply with federal Selective Service registration requirements; and
claim the MRS award within one year after high school graduation, but no later than June
15 of the academic year following high school graduation.
Indiana
The Hoosier Scholar Award recognizes the achievement of Indiana high school seniors and is
funded through appropriations made by the Indiana General Assembly. The $500 non-renewable
scholarship is based on academic merit and may be used for any educational expense.
Eligibility requirements:
be a senior at an approved Indiana high school;
be an Indiana resident;
rank in the top 20 percent of his/her high school graduating class; and
plan to attend an eligible Indiana college or university as a full-time student.
There is no application process for the Hoosier Scholar Award. Additional selection criteria and
nominations are the responsibility of the high school.
1
The Monetary Award Program provides need-based grants to eligible undergraduate
students who are not required to submit high school grades or test scores when applying for à
MAP grant.
06/03/96
17:14
202 456 7132
WHITE HOUSE/NEC
007/007
New Mexico
The New Mexico Scholars' Program encourages New Mexico high school students to attend
public or selected private non-profit colleges in New Mexico before their 22nd birthday. The
selected private non-profit colleges are The College of Santa Fe, St. John's College in Santa Fe,
or the College of the Southwest.
The award is a scholarship for tuition, books, and fees and is based on availability of funds.
Applicants must have a combined family income of less than $30,000 per year. If 2 or more
family members are enrolled in a postsecondary institution, the combined family income cannot
exceed $40,000.
Eligibility requirements:
be a New Mexico resident who is an undergraduate attending any public and selected
private non-profit postsecondary institutions in New Mexico who have not yet turned 22;
and
graduated in the top 5 percent of their high school class or have obtained a score of 25 on
the ACT or 1020 on the SAT.
Clinton Presidential Records
Digital Records Marker
This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies the place of a tabbed divider. Given our
digitization capabilities, we are sometimes unable to adequately
scan such dividers. The title from the original document is
indicated below.
Pell Grants
Divider Title:
JUN-02-96 SUN 15:03
P. 22/37
STUDENT FINANCIAL ASSISTANCE
Federal Pell grants
Recipients must be undergraduates and enrolled with the purpose of obtaining a degree or
certificate at an eligible institution. Students must also have a high school diploma (or its
equivalent) or a demonstrated ability to benefit from the training offered by the institution. Less
than full-time students are eligible for awards, which are prorated on the basis of enrollment
status.
Award rules:
The amount of the Pell Grant award is the lesser of the following three amounts:
The maximum award minus the EFC,
The student's cost of attendance minus the EFC, or
In any year for which an appropriation act provides a maximum award in excess of
$2,400. the sum of: (1) $2,400 plus one-half of the difference between the maximum
award and $2,400; and (2) the lesser of: (a) the remaining one-half of the difference
between the maximum award and $2,400, or; (b) the sum of the student's tuition and
allowances for dependent care and disability-related expenses.
Costs of attendance:
For purposes of determining the Pell Grant award, the cost of attendance is established by the
postsecondary institution and includes the following components:
Tuition and fees,
An allowance for books, supplies, transportation, and miscellaneous expenses,
Allowances for dependent care and disability-related expenses, and
Living allowances of
- the actual amount charged by the institution for room and board for students living
at school,
-- not less than $1,500 for students living with parents. and
- not less than $2,500 for all other students.
The cost of attendance for a less-than-half-time student includes: tuition and fees; an allowance
for books, supplies and transportation; and dependent care. The cost of attendance for an
incarcerated student is limited to tuition and fees and, if required, books and supplies.
Financial aid administrator discretion:
The Higher Education Act provides that financial aid administrators may adjust a student's Pell
Grant award by changing the cost of attendance or the value of data elements used to calculate
the EFC to reflect "special circumstances." which are not subject to definition by the Secretary.
L-16
JUN-02-96 SUN 15:04
P.23/37
STUDENT FINANCIAL ASSISTANCE
Federal Pell grants
Institutional payments:
The Higher Education Act provides for payments to institutions, based on a $5 per Pell Grant
recipient calculation, to reimburse institutions for a share of the cost of administering the Pell
Grant program. Funds for these payments are reserved from the Pell Grant appropriation.
Program history:
Applicant and Recipient Growth: The graph below shows the applicant and recipient trends
since the inception of the Pell Grant program.
Applicant growth is affected by many factors, including college enrollment and the recent
requirement that students complete the Federal application form prior to receiving any Title IV
student aid.
Recipient growth is affected by changes in family incomes, need analysis, and the level of the
maximum Pell Grant award, as well as by the factors affecting changes in applicant levels. Data
for academic years 1994-95 through 1996-97 are estimated.
Pell Grant Program
Applicants and Recipients (1973-74 to 1996-97)
10,000,000
8,000.000
Applicants
6,000,000
4,000,000
2,000,000
Recipients
0
1975-76
1979-80
1983-84
1987-88
1991-92
1995-96
1973-74
1977-78
1981-82
1985-86
1989-90
1993-94
Academic Year
L-17
JUN-02-96 SUN 15:04
P.24/37
STUDENT FINANCIAL ASSISTANCE
Federal Pell grants
Aid Available: The aid available calculations presented in the Pell Grant policy discussions and
impact data represent the amount needed to fund the program in that award year less the
institutional payments for the number of recipients. The following graph shows aid available
since the inception of the Pell Grant program. Data for academic years 1994-95 through 1996-
97 are estimated.
Pell Grant Program
$ in Billions
Aid Available (1973-74 to 1996-97)
$6
$5
$4
$3
$2
$1
$0
1975-76
1979-80
1983-84
1987-88
1991-92
1995-96
1973-74
1977-78
1981-82
1985-86
1989-90
1993-94
Academic Year
Funding levels for the past five fiscal years were as follows:
($ in 000s)
1992
$5,499,690¹
1993
6,458,805¹.²
1994
6,633,566¹⁻¹
1995
6,143,680¹.
1996
4,967,446
1 Excludes $3.165 million in FY 1992, FY 1993, FY 1994, and FY 1995 appropriated by transfer from the
Department of Defense, pursuant to P.L 102-27. the Dire Emergency Supplemental Appropriations Act of 1991.
2 Includes appropriation of $671.237 million to cover estimated costs of cumulative Pell Grant program funding
shortfalls and supplemental appropriation of $30 million provided in the fiscal year 1993 Emergency Supplemental
Appropriations for Relief from Major, Widespread Flooding in the Midwest
, Includes appropriation of $250 million to help cover estimated costs of cumulative Pell Grant program funding
shortfall.
4 Reflects a rescission of $35 million from FY 1994 unobligated balances.
L-18
JUN-02-96 SUN 15:04
P.25/37
5919
506
STUDENT FINANCIAL ASSISTANCE
$6.4
Federal Pell grants
1997 BUDGET REQUEST
The Department requests $5.9 billion for Pell Grants, an increase of $952 million over the 1996
tentative conference level. The Pell Grant has been designed to be the foundation of a student
financial aid package to which other aid is added. Studies show that Pell Grants have been
successful in helping low-income students overcome financial barriers to postsecondary
education. Students from low-income families who receive Pell Grants have significantly higher
participation and graduation rates than students in similar financial circumstances who do not
receive grants.
Budget Authority. The Administration's 1997 budget request for Pell Grants is $5.919 billion, an
increase of 19.2 percent over the 1996 tentative conference level. In addition to the new budget
authority, the Department will use $506 million in surplus budget authority carried forward from
prior years to meet the projected cost of the Pell Grant program in 1997.
Proposed Policy Changes: The 1997 request for Pell Grants proposes to raise the maximum
Pell Grant award by 9.3 percent over the 1996 tentative conference level. The maximum Pell
Grant award would be substantially increased by $230 from $2,470 to $2,700.
Maximum Pell Grant Awards
1997 Maximum Award Compared to Previous Years
$2,700 -
$2,700
Largest increase in the
maximum award since
implementation of the
Pell Grant program
$2,500 -
$2,470
$2,340
$2,300
$2,300
$2,300
1993
1994
1995
1996
1997
Raising the maximum Pell Grant increases aid to students at the lowest income levels, and
improves the affordability of higher education by increasing the purchasing power of Pell Grants.
L-19
JUN-02-96 SUN 15:04
P. 26/37
STUDENT FINANCIAL ASSISTANCE
Federal Pell grants
Aid Available: Under the Administration's 1997 request, a total of $6.4 billion in aid would be
available under the Pell Grant program. The aid available under the Pell Grant program in 1997
would represent a 12.5 percent increase over the estimated amount that will be received by Pell
Grant recipients in 1996 at the H.R. 3019 tentative conference level.
Number of Recipients: Under the Administration's 1997 request, a total of 3.76 million recipients
would receive assistance under the Pell Grant program. This number of Pell Grant recipients
would represent a 4.1 percent increase over the projected number of students receiving Pell
Grants in 1996 at the H.R. 3019 tentative conference level.
IMPACT DATA ($ in 000s)
1995
1996
1997
Aid available to students
$5,426,000
$5,693,000
$6,406,000
Recipients
3,600,000
3,606,000
3,755,000
Maximum grant (whole $)
$2.340
$2,470
$2,700
Minimum grant (whole $)
$400
$400
$400
Average grant (whole $)
$1,507
$1,579
$1,706
Family Income Levels and Dependency Status: The charts on the following pages provide
estimates for Pell Grant recipients by family income and dependency status under the
Administration's 1997 request. In award year 1997-98, as in the past few years, most Pell Grant
recipients are expected to have family incomes of less than $15,000 and most of the funds will
be awarded to students with family incomes of less than $10,000.
L-20
JUN-02-96 SUN 15:05
P.27/37
STUDENT FINANCIAL ASSISTANCE
Federal Pell grants
Distribution of Pell Grant Funds by Family Income
1997 Proposed Policy
< $10,000
44%
$30,000 +
13%
$10.000-15,000
$25,000-30,000
12%
8%
$15,000-20,000
$20,000-25,000
12%
10%
Distribution of Pell Grant Funds by Dependency Status
1997 Proposed Policy
$5,000
58%
$4,000
Funds to Recipiente (millions)
42%
$3,000
$2,000
$1,000
$0
Dependent
Independent
Dependency Status
L-21
06/01/96
07:11
NO. 119
902
MAY-31-96 FRI 15:09
P.02
Page I
STUDENT AID ELIGIBILITY UNDER CURRENT LAW AND PROPOSALS
Print
BEFORE COLLEGE
Family saves through savings bonds, IRAs, and state tuition prepayment plans before
student enters college.
--interest exemption for savings bonds used for college; phases out for higher incomes.
--could save $2,000 (indexed for inflation) annually in IRA with favorable tax
treatment if used for education. Could consider allowing additional contributions for
education.
-Treasury working on favorable tax treatment for the state plans.
WHILE IN COLLEGE
When student enters college, calculate expected family contribution (EFC).
0
Determine Pell Grant:
--maximum award ($2.470 for 1996-97 school year) minus EFC.
--President's budget increases maximum to $3,100 in 2002.
Determine amount of Stafford loan cligibility.
--for subsidized loan. eligible to borrow total costs minus EFC and other student aid up
to annual maximum ($2,625 for freshmen, $3,500 for sophomores, and $5,500 for other
undergraduates).
--for unsubsidized loan eligible for amount of annual maximum not borrowed in
subsidized Stafford.
-for subsidized loan, interest does not accumulate while in school: for unsubsidized loan.
interest does accumulate while in school.
--could use savings instead of loans.
o
Students are also eligible for other Federal aid-Perkins loans. work-study (President
proposed increased funding), SEOG, Presidential Honors Scholarships. (Tot 5% $100
Parents may borrow up to total cost minus financial aid received by the student.
AFTER PAYING TUITION
0
Under the President's Middle Class Bill of Rights proposal, students could receive
an income tax deduction equal to tuition net of grants up to $10,000.
-in the 15% tax bracket, this would equal a maximum reductión in taxes of $1,500.
--in the 28% tax bracket, it would equal a maximum reduction in taxes of $2,800.
-deduction phases out for higher incomes.
06/01/96
07:12
NO. 119
903
P. 03
MAY-31-96 FRI 15:09
n
Under the guarantee proposal under consideration, eligible first- and second-year
students would receive a tax credit of $1,500 or tuition, whichever is less, minus Pell
Grants.
-credit phases out for higher incomes.
Notes:
Items in bold are proposed.
Total costs include tuition, fees, room and board.
06/01/96
07:12
NO. 119
904
P.04
MAY-31-96 FRI 15:09
500
4500
Illustrative Examples
Student From Family with income of $20,000
Community Flost Year Student
Average Cost .
Public
College
Community Second Year Student
4.Year
Public
Tuition Component
$4,450
College
$7,500
4-Year
51,200
$4,450
$2,900
$7,500
$1,200
Expected Family Contribution"
$2,800
0
o
0
0
Student Aid
Pell Grant
2,470
2,470
2.470
2.470
Stafford Loan
Subsidized
1,980
2,625
1.980
Unsubsidized
3,500
0
0
0
o
PLUS Loan Eligibility
0
2.405
0
1,530
Tax Benafit
Tax Deduction (MCBR)
Middle Class
Bus of Rights
0
65
9
65
Tax Credit (Guarantee)
0
o
o
0
Student From Family with Income of $30,000
First Year Student
Second Year Student
Community
Public
Community
Public
College
4-Year
College
*Year
Average Cost .
$4,450
$7,500
$4,450
$7.500
Tuition Component
$1,200
$2.900
$1,200
$2,900
Expected Family Contribution -
668
668
668
668
Student Aid
Pell Grant
1,802
1,802
1,802
1,802
Stafford Loan
Subsidized
1,980
2,625
1,980
3,500
Unsubsidized
645
o
6G8
0
PLUS Loan Eligibility
23
3,073
0
2,198
Tax Benefit
Tax Deduction (MCBR)
0
165
0
165
Tax Credit (Guarantee)
0
0
D
0
Student From Family with Income of $60,000
First Year Student
Second Year Student
Community
Public
Community
Public
College
4 Year
College
Average Cost -
$4,450
$7,500
$4,450
$7,500
Tuition Component
$1,200
$2,900
$1,200
$2,900
Expected Family Contribution -
6,799
6,799
6,799
6.799
Student Aid
Pell Grant
0
0
o
0
Stafford Loan
Subsidized
0
701
0
701
Unsubsidized
2,625
1,924
3.500
2,799
PLUS Loan Eligibility
1,826
4,875
950
4,000
TaxBenefit
Tax Deduction (MCBR)
336
812
330
812
Tax Credit (Guarantee)
1,400
1,500
1,400
1,500
. Based on estimated 1996-97 college costs.
- Based on family of 4 with 1 child In college.
31-May-96
06/01/96
07:12
NO. 119
905
P.05
MAY-31-96 FRI 15:09
Pell Grant Eligibility
For a family of four with one child in college:
The student receives the maximum Pell grant of $2,470 if the family has $26,000
or less of income;
The student receives a $1,500 Pell grant if the family has $32,000 of income; and
The student is not eligible for a Pell grant if the family has $40,000 or more of
income.
Income eligibility increases if the family has more children in college.
90%<
Summary of Pell Grant Information
Surplus
Maximum
Average
Aid Available
Program Cost
Appropriation
Outlays
(Shortfall)
Fiscal Year
Award Year
Award
Recipients
Award
(Thousands)
(Thousands)
(Thousands)
(Thousands)
(Thousands)
JUN-03-96 MON 10:23
Current Services ($2,470 Maximum in 1996)
1994
1994 95
$2,300
3,679,000
$1,489
$5,478,000
$5,496,000
$6,636,731
$5,707,136
$621,243
1995
1995 - 96
$2,340
3,600,000
$1,507
$5,426,000
$5,444,000
$6,146,845
$5,570,485
$1,324,088
1996
1996 97
$2,470
3,630,000
$1,578
$5,729,000
$5,747,000
$4,914,000
$5,572,903
$491,088
1997
1997 98
$2,470
3,629,000
$1,579
$5,729,000
$5,747,000
$5,046,678
$5,740,940
($209,234)
1998
1998 99
$2,470
3,663,000
$1,581
$5,790,000
$5,808,000
$5,182,938
$5,759,200
($834,295)
1999
1999 0
$2,470
3,710,000
$1,584
$5,876,000
$5,895,000
$5,322,878
$5,824,180
($1,406,418)
2000
2000 1
$2,470
3,768,000
$1,586
$5,974,000
$5,993,000
$5,466,595
$5,912,880
($1,932,822)
2001
2001 2
$2,470
3,826,000
$1,588
$6,076,000
$6,095,000
$5,614,193
$6,011,440
($2,413,629)
2002
2002 3
$2,470
3,873,000
$1,591
$6,163,000
$6,183,000
$5,765,777
$6,110,560
($2,830,852)
President's Budget
1994
1994 - 95
$2,300
3,679,000
$1,489
$5,478,000
$5,496,000
$6,636,731
$5,707,136
$621,243
1995
1995 - 96
$2,340
3,600,000
$1,507
$5,426,000
$5,444,000
$6,146,845
$5,570,485
$1,324,088
1996
1996 - 97
$2,470
3,630,000
$1,578
$5,729,000
$5,747,000
$4,914,000
$5,572,903
$491,088
1997
1997 98
$2,700
3,752,000
$1,706
$6,402,000
$6,421,000
$5,919,000
$5,875,740
($10,912)
1998
1998 - 99
$2,780
3,834,000
$1,751
$6,714,000
$6,733,000
$6,091,000
$6,469,920
($652,912)
1999
1999 - 0
$2,863
3,934,000
$1,797
$7,071,000
$7,091,000
$6,261,000
$6,798,360
($1,482,912)
2000
2000 - 1
$2,949
4,041,000
$1,846
$7,459,000
$7,480,000
$6,437,000
$7,161,640
($2,525,912)
2001
2001 - 2
$3,037
4,153,000
$1,896
$7,875,000
$7,896,000
$6,617,000
$7,555,420
($3,804,912)
2002
2002 - 3
$3,128
4,256,000
$1,948
$8,291,000
$8,312,000
$6,802,000
$7,970,880
($5,314,912)
vizzast
R
P.03 P. 03
Budget Service 05/21/96 09:21 AM
June 2, 1996
Maximum Pell GrantsUnder President's proposal
Dollar Percent Increase
1995
2,340
1996
2,470
6%
1997
2,700
9%
1998
2780
3%
1999
2860
3%
2000
2940
3%
2001
3,030
3%
2002
3,120
3%
The proposed 1997 increase is the largest increase in the maximum award in the history of
the Pell Grant program. (The program was enacted in 1972.)
26% increase in maximum award in 2002 from 1996
33% increase in maximum award in 2002 from 1995
The average Pell Grant is $1,600 this year, and will increase to $1,700 in 1997 under the
President's proposed expansion.
Number of students receiving Pell Grants (remember it is like an entitlement):
1995 3.6 million
1997 3.7 million
1997
4.1 million
Income eligibility: Pell Grants are based on expected family income, which is based on
income, number of children, number in college, etc.
A student from a family of four with one child in college in 1996:
If this family has an income of $26,000 or less, the student receives the maximum Pell
Grant award of $2,470.
If this family has an income of $32,000, the student receives $1,500.
This student is not eligible for a Pell grant if the family has $40,000 or more of income.
Over 90% of Pell Grant recipients are from families with incomes under $30,000.
Over Lave inwe < $15,000.
Page 1
FEDERAL PELL GRANT PROGRAM
I. PROGRAM DESCRIPTION
The Federal Pell Grant Program provides grants to low-income undergraduate
students to promote access to postsecondary education. A Federal Pell Grant,
unlike a loan, does not have to be repaid. Eligibility for Pell Grants is based on
financial need using a formula that is applied uniformly to all applicants. In general,
the amount of a student's Pell Grant is inversely related to the family's income.
Pell Grants are considered the "foundation" of a student's financial aid package, that
is, other aid, including loans and work-study, is awarded after the Pell grant amount
has been determined. Pell Grants, which range in value from $400 to $2,340 for the
current year, are disbursed to the student by the postsecondary institution the
student is attending.
II. PROGRAM HISTORY
The Federal Pell Grant Program was authorized as the "Basic Educational
Opportunity Grant program" by the Education Amendments of 1972 (P.L. 92-318,
enacted June 23, 1972). Current statutory authority is provided by the Higher
Education Act of 1965, as amended, which expires on September 30, 1997.
The legislation establishing the Federal Pell Grant Program was created in the
Senate Committee on Labor and Public Welfare, Chaired by Harrison A. Williams,
Jr. and through its Subcommittee on Education, Chaired by Claiborne Pell.
Typically, appropriations act language specifies the annual maximum Pell Grant
award. Institutions are paid a $5 administrative fee for each Pell Grant recipient.
Hence, virtually the entire appropriation funds student-level awards.
Fiscal Year
Appropriation
Fiscal Year
Appropriation
1980
$2,157,000,000
1988
$4,260,430,000
1981
$2,604,000,000
1989
$4,483,915,000
1982
$2,419,040,000
1990
$4,804,478,000
1983
$2,419,040,000
1991
$5,375,502,000
1984
$2,800,000,000
1992
$5,502,855,000
1985
$3,862,000,000
1993
$6,461,970,000
1986
$3,579,716,000
1994
$6,633,566,000
1987
$4,187,000,000
1995
$6,247,180,000
III. ACCOMPLISHMENTS
Students may use their Pell Grants at any one of approximately 6,900 participating
postsecondary institutions. Each year, approximately 8 million students apply for
Pell Grants. In fiscal year 1995, more than 3.6 million students received grants
averaging $1,500.
Pell Grants mostly assist lower income students. More than 90 percent of all Pell
Page 2
Grant recipients are from families with annual incomes less than $30,000.
The General Account Office reported that an additional $1,000 in grant money for
low-income students reduced their dropout likelihood by 14 percent, while loans had
no statistically significant effect on dropout rates.
The President's fiscal year 1997 budget requests funding to support a $2,700
maximum Pell Grant-a near 10 percent increase over the current level-which
would provide more than 3.7 million students with Pell Grants averaging $1,700.
500,000
The President has proposed continued increased Pell Grant program funding so
more
that the maximum award would rise to $3,128 in fiscal year 2002, resulting in
17% inc.
awards to an estimated 4.1 million postsecondary students.
IV. HISTORY OF BIPARTISAN SUPPORT
A recently released report from The Heritage Foundation called for the transfer of
the Pell Grant program to the Department of Health and Human Services while
calling for the elimination or block granting other Department of Education programs,
as well as the elimination of the Department. This report notes that the Pell Grant
program is the Department's most "need-focused" student aid program, and
advocates terminating most other merit-based scholarship programs in order to
focus resources on need-based grant programs such as Pell Grants.
The Administration had requested a $2,620 maximum Pell Grant for fiscal year
1996. While not agreeing with the President, the Republican-controlled Congress
has nonetheless increased the maximum for 1996 by more than $100 over the 1995
level.
V. MAIN CRITICISMS/ATTACKS ON THE PROGRAM AND RESPONSES
Senator Nunn has criticized the Pell Grant program being more concerned about
getting money to students rather than demanding results.
In a February, 1995, speech to the National Association of Independent College and
Universities, Speaker of the House Newt Gingrich said that Pell Grant recipients
should have to work for their awards, which are the primary source of federal
support for low-income students. Recipients should have to "do more than breathe,"
he said in a speech to the annual meeting of the National Association of
Independent Colleges and Universities. (The Chronicle of Higher Education,
February 10, 1995)
OPE/PPI
April 18, 1996
Pell Grant Alternatives:
President's Plan VS. Republican Plan
Maximum Pell Grant Awards
$3,200
$3,000
President's Proposal
$2,800
$2,600
$2,400
$2,200
Republican Proposal
$2,000
1996
1997
1998
1999
2000
2001
2002
Data for Pre
ent's proposal from FY 1997 Balanced Budget. Data
epublican proposal based on the House and Senate
ublican
Budget Resolutions, assuming a freeze of Pelll Grant Budget Authorit
the 1996 level through FY2002.
FYI
EXECUTIVE OFFICE OF THE PRESIDENT
03-Jun-1996 05:08pm
TO:
Pauline M. Abernathy
FROM:
S. Aromie Noe
Office of Mgmt and Budget, HRD
CC:
Lisa B. Fairhall
CC:
Barry White
SUBJECT:
President's plan vs. Republican plan
Per your request, I am sending you a table that compares the
President's and Republican plans for Pell.
As I mentioned earlier, we do not know for sure what the
Republican plans are, since Republicans are not specific about
their Pell policy. For now, we assume that Republican plans would
freeze a Pell BA at the 1996 level, through FY2002. Please be
explicit about our assumption whenever you use information below.
Fiscal Year
Max Award
Recipients
Pres.
(Republican)
Pres.
(Republican)
1997
$2,700
($2,350)
3,752,000 (3,561,000)
1998
$2,780
($2,160)
3,834,000 (3,477,000)
1999
$2,863
($2,135)
3,934,000 (3,504,000)
2000
$2,949
($2,105)
4,041,000
(3,536,000)
2001
$3,037
($2,080)
4,153,000
(3,575,000)
2002
$3,128
($2,055)
4,256,000
(3,606,000)
V I w.n I probably gruph this
EFC's and Income
for Receiving Subsidized Stafford Loans
JUN-03-96 MON 21:14
First Year Student
Second Year Student
Community
Public
Community
Public
College
4-Year
Private
College
4-Year
Private
Average Cost of Education*
$4,450
$7,500
$18,000
$4,450
$7,500
$18,000
EFC to get Maximum Subsidized Stafford **
nak
4,875
15,375
na*
4,000
14,500
Income Cutoff to get Maximum Subsidized Stafford
nak
$52,876
$92,382
*
па
$49,372
$89,077
EFC to get Zero Subsidized Stafford **
4,450
7,500
18,000
4,450
7,500
18,000
Income Cutoff to get Zero Subsidized Stafford
$51,280
$62,649
$102,185
$51,280
$62,649
$102,185
* Based on estimated 1996-97 college costs
** Based on family of 4 with I child in college
*
Never get maximum/Poon subsidized
because Student would receive Pell grant
P. 04/04
JUN-03-96 MON 22:02
P. 02/02
Page 4 of 4
Undergraduate Students: Attendance Status by Class Level, Income and Dependency
Category, Aid Receipt, Tuition and Fee Category and Institutional Type, 1992-93
Part-time.
Part-time.
at least
less than
Other
Full-time
half-time
half-time
part-time
Total
All Students
9,023,900
3,842,200
4,285,400
562,200
18,313,700
Class level (including 5th year)
Freshman (1st year undergraduate)
3,949,100
1,915,500
2,402,000
239,000
8,505,000
Sophomore (2nd year undergradaute)
2,043,300
961,900
795,500
116,300
3,917.000
Junior (3rd year undergraduate)
1,490,900
357,700
270,900
68,500
2,188,000
Fourth year undergraduate
1,797,900
410,700
288,300
43,200
2,540.100
Fifth year undergraduate
189,000
96,300
150,300
17,600
453,200
Undergraduate (level unknown)
154,900
99,000
378,800
77,600
710,300
Income and dependency level (categorical)
Dependent: Less than $10,000
369,300
84,500
41,100
4,100
499,000
Dependent: $10,000-$19,999
541.500
157.500
91.400
9,400
799,800
Dependent: $20,000-$29,999
641.300
158.400
94,600
20,400
914,700
Dependent: $30,000-$39,999
763,300
200.700
139,700
18,200
1,121,900
Dependent: $40,000-$49,999
852.600
289,200
236,000
24,400
1,402,200
Dependent: $50,000-$59,999
914,100
155,900
115,400
22,300
1,207,700
Dependent: $60,000-$69,999
660,000
96,500
76,800
8,400
841,700
Dependent $70.000-$79,909
307,600
44,500
20,500
1,300
373,900
Dependent: $80,000-$99,999
338,800
58,100
34,600
5,800
137,300
Dependent: $100,000 or more
444,400
71,400
38,600
6.700
561,100
Independent: Less than $5,000
726,300
212,700
123,100
20,800
1,082,900
Independent: $5,000-$9,999
739,200
304,400
181,900
14,300
1,239,800
Independent: $10,000-$19,000
849,300
606,600
391,900
81,300
2,129,100
Independent: $20,000-$29,999
452,700
496,900
739,500
84,800
1,773,900
Independent: $30,000-$49,999
417,200
549,200
1.096,000
171,100
2,233,500
Independent: $50,000 or more
169,700
237,400
587,300
65,500
1,059,900
Title IV amount
No Title IV Aid Received
5,379,600
2.830,100
3,979,700
511,900
12,701,300
Some Title IV Aid Received
4,244,300
1,011.100
306,400
49,400
5,611.200
Pell amount
Nonrecipient
6.761.000
3.047.600
4.069,300
530,300
14,408,200
Recipient
2,863.000
793.700
216,300
31,200
3,904,200
Stafford amount
Nonborrower
6.963,100
3,425,200
4,112,300
535,300
15,035,900
Borrower
2,661,100
417,000
173.400
26,600
3,278,100
Tuition and fees (amount for terms attended)
Up to $1,000
2,023,600
2,520,300
3,825,500
391,600
8,761,000
$1,001 to $1,500
1,113,300
460,200
166,100
42,200
1,781,800
$1,500 to $2,000
1,145,100
262,300
97,700
24,300
1,529,400
$2,001 to $2,500
958,300
135,400
43,000
19,700
1,156,400
$2,501 to $3,000
650,700
89,100
32,500
15,700
788,000
$3,001 to $5,000
1,344,000
208,000
56,600
32,800
1,641,400
$5,001 to $10,000
1,290,200
125,000
34,300
21,300
1,470,800
Over $10,000
1,044,000
16,100
7,100
5,600
1.072,800
Institutional type (level and control)
Public Four-year
4.027,400
908,500
687,400
76,900
5,700,200
Public Two-year
2,504,300
2,362,600
3,119,600
350,100
8,336,600
Private Four-year
1,871,400
341,600
324,900
73,900
2,611,800
Private Two-year
144,600
62,100
76,600
9.200
292,500
Proprietary, at least 2 years
410.400
67,000
52,400
35,900
565,700
Proprietary, less than 2 years
667,000
99,600
24,700
16,100
807,400
Computation by DAS-T Version 0.47 on 10/23/95
Source: NCES, NPSAS:93 Undergraduate Students, 5/23/95
Note that "low n" means too few unweighted cases for a reliable estimate.
ED/OPE 10/24/95
974 93-94
1015 94-95
1125 53
1194 94
NO. 119
907
06/01/96
07:13
P.07
MAY-31-96 FRI 15:10
Tuition and Required Fees
Public 2-Year Institutions
1996-97 (Estimates)
Total Number Enrolled
Percent with
Percent with
Percent with
State
Average Tuition
Full-Time/Full-Year
Tuition Under $1,500
Tuition Under $2,500
Tultion Under $4,000
AK
$1,483
2,787
100%
100%
100%
AL
5697
264,763
96%
100%
100%
AR
$972
47,013
100%
100%
100%
AZ
$817
268,146
100%
100%
100%
CA
$407
1,339,929
100%
100%
100%
CO
$1.379
154.432
63%
100%
100%
CT
$1.708
64,479
0%
100%
100%
DE
$1,422
15.829
100%
100%
100%
FL
$1.196
669,914
91%
100%
100%
GA
$1,145
140.718
92%
98%
100%
HI
$560
35.921
100%
100%
100%
IA
$1.906
88,337
0%
100%
100%
ID
$1.112
11,991
100%
100%
100%
IL
$1.335
686,963
81%
100%
100%
IN
$2,019
75,020
0%
100%
100%
KS
$1.140
163,410
100%
100%
100%
KY
$1,134
75,531
91%
100%
100%
LA
5864
66.787
100%
100%
100%
MA
$2.736
124,832
0%
20%
100%
MD
$2.086
171,581
6%
83%
100%
ME
52,458
13,927
0%
55%
100%
MI
$1.586
361,633
41%
100%
100%
MN
$2.207
170,998
0%
91%
98%
MO
$1.379
126,718
97%
99%
99%
MS
$1.049
75,612
100%
100%
100%
MT
$1,589
10,919
44%
100%
100%
NC
$652
275,444
100%
100%
100%
ND
$1,872
12,233
12%
100%
100%
NE
$1,216
80,525
99%
100%
100%
NH
$2.601
12,634
0%
0%
100%
NJ
$1,980
197,869
0%
100%
100%
NM
$675
76,464
99%
100%
100%
NV
$938
60,714
100%
100%
100%
NY
$2,407
359,129
0%
82%
100%
OH
52.365
240,259
0%
62%
100%
OK
51,261
129,664
85%
100%
100%
OR
$1,493
178,005
36%
100%
100%
PA
$1,967
175.574
9%
99%
99%
RI
$1,894
24,579
0%
100%
100%
SC
51,148
116,786
90%
100%
100%
SD
$2,873
5,130
0%
45%
100%
TN
$1,020
121,655
100%
100%
100%
TX
5755
707,275
98%
100%
100%
UT
51525
43,695
27%
100%
100%
VA
$1,553
213,838
0%
100%
100%
VT
$2,467
7,998
0%
100%
100%
WA
$1,499
311.496
75%
100%
100%
WI
$1.934
235,516
8%
93%
100%
WV
31,542
11,547
44%
96%
100%
WY
$1,004
31,204
100%
100%
100%
TOTAL
$1,200
8,857,423
67%
96%
100%
Source: IPEDS Institutional Characteristics File, 1994-95
NO. 119
008
06/01/96
07:14
P.08
MAY-31-96 FRI 15:10
Tuition and Required Fees
All Public Institutions
1996-97 (Estimates)
Total Number Enrolled
Persent with
Percent with
Percent with
State
Average Tuition
Full-Time/Full-Yeur
Tuition Under $1,500
Tuition Under $2,500
Tuition Under $4,000
AK
$2,223
57,134
5%
75%
100%
AL
$1,251
394,581
65%
85%
100%
AR
$1,667
119,794
39%
86%
97%
AZ
$1.139
355,430
75%
100%
100%
CA
$761
1.643.613
82%
100%
100%
CO
$1,885
278,634
36%
76%
99%
CT
$2,692
119,114
1%
55%
86%
DC
$1,174
23,517
100%
100%
100%
DE
53,202
41,934
38%
47%
47%
FL
$1,341
870,436
70%
98%
98%
GA
$1.695
302,846
43%
87%
100%
HI
$1.007
59,664
62%
100%
100%
IA
$2.750
147,195
0%
60%
100%
ID
$1.645
56,996
21%
100%
100%
IL
$1.768
857,988
65%
82%
94%
IN
$2,856
275,412
0%
27%
100%
KS
$1,540
253,599
64%
97%
100%
$1.812
178,838
38%
78%
100%
KY
LA
$2,000
220,218
30%
77%
100%
MA
$3,576
228.442
0%
11%
74%
MD
$2.703
280,731
5%
52%
89%
ME
$3,303
51,369
0%
15%
77%
MI
$2.552
585.784
25%
62%
89%
MN
$2.660
302,813
0%
51%
97%
MO
248,637
49%
61%
98%
$2.244
MS
$1,784
133,847
56%
57%
100%
MT
$2,167
42,423
11%
100%
100%
NC
$1.021
427,742
68%
100%
100%
ND
$2.310
44,001
3%
56%
100%
NE
51.651
134,609
59%
83%
100%
NH
$3.873
39,342
0%
0%
63%
NJ
318,022
0%
62%
82%
$2,677
$1,204
123.270
61%
100%
100%
NM
$1,261
94,979
64%
100%
100%
NV
NY
$2.808
702,359
1%
43%
99%
52,956
433,033
0%
34%
99%
OR
$1,429
223.396
53%
96%
96%
OK
OR
$1.974
236,594
27%
75%
100%
PA
368,348
4%
47%
49%
$3,581
47,033
0%
52%
72%
RI
$2.961
193,041
54%
60%
98%
SC
$2029
SD
$2,791
37,858
0%
14%
97%
235.717
52%
100%
100%
TN
$1.558
1.111.384
67%
98%
100%
TX
$1.126
5
$1,962
131,914
9%
80%
100%
VA
358,103
0%
60%
73%
$2.629
25.597
0%
31%
31%
VT
$5.230
$1,820
404.138
58%
77%
99%
WA
WI
52,242
381.139
5%
61%
99%
$2.081
78,000
13%
99%
100%
WV
41,989
74%
100%
100%
WY
$1,297
TOTAL
$1.900
14,322,657
42%
76%
95%
Source: IPEDS Institutional Charaoteristics File, 1994-95
America's
HOPE
Scholarships
A Tax Cut to Make
14 Years Of Education
The Standard For All
June 4, 1996
AMERICA'S HOPE SCHOLARSHIPS
A TAX CUT TO MAKE 14 YEARS OF EDUCATION THE STANDARD FOR ALL
June 4, 1996
PRESIDENT CLINTON ANNOUNCES THE HOPE SCHOLARSHIP PLAN TO MAKE 14
YEARS OF EDUCATION -- AT LEAST TWO YEARS OF COLLEGE -- THE STANDARD
FOR ALL AMERICANS. President Clinton's HOPE Scholarship Tax Cut makes clear that 2 years
of college should be as universal as high school and builds on his comprehensive program to guarantee
that a college education is both accessible and affordable to all Americans at any time in their life. To
further this guarantee, the President announced the following proposals:
NEW AMERICA'S HOPE SCHOLARSHIP TAX CUT -- Guarantees 2 Years of Tuition
at the Average Community College for Any Student Who Earns a B Average. Modeled on
the successful Georgia HOPE Scholarship program, this new proposal provides all students with
a $1,500 refundable tax credit for full-time tuition in their first year ($750 for half-time), and
another $1,500 in their second year if they work hard, stay off drugs, and earn at least a B
average in their first year. This $1,500 tax credit will pay for more than the full cost of tuition
at the national average-priced community colleges -- and a downpayment at more expensive
four-year schools.
$10,000 Tax Deduction for All Education and Training. The President maintains his
$10,000 tax deduction for tuition for college, graduate school, community college, certified
training and technical programs. This encourages lifetime investment in higher education.
Scholarship Increases (Pell Grants) for Lower-Income Students: The President announced
that his balanced budget plan increases Pell Grants each year. Indeed, the maximum Pell Grant
award will increase by 33% from fiscal 1995 to fiscal 2002. The proposed increase in fiscal
1997 is the largest in the program's 25-year history.
BUILDS ON PRESIDENT'S PLAN FOR GUARANTEED ACCESS TO COLLEGE. The above
initiatives build on the President's plan to guarantee that college is both accessible and affordable to
every person -- through loans with pay-as-you-can repayment, grants, scholarships, and work study.
With the increased Pell Grant program support, students have access to up to $5,100 in Pell
Grants and student loans for their first year in college, and much more in future years.
The new Direct Student Loan program enacted as part of the President's 1993 Economic
Plan is allowing millions of students to borrow in a simpler, less bureaucratic way, and to pay
back their loans as a share of their income, and part of the savings from Direct Lending will be
returned to students in the form of lower interest payments on their loans.
New Direct Loans With Pay-As-You-Can Option: Will account for 50% of loans
National Service -- AmeriCorps: 30,000 students earning up to $4,725 for service
Pell Grants: Provides for 7-year expansion, increasing maximum award to $3,128 in 2002
$10,000 Education Deduction: 16.5 million students get deduction for their tuition
Work Study Expansion: Proposes expansion to 1 million participants by FY2002
Honors Scholarships: Proposes $1,000 scholarship for top 5% of every high school class
IRAs for Education: Proposal allows penalty-free withdrawals for education
Skill Grants: Proposed $2,600 Skill Grants to enable dislocated workers to get needed skills
1
America's HOPE Scholarship Tax Cut
Page
2-Page Summary of the New HOPE Scholarship Tax Cut
2-3
How the New America's HOPE Scholarship Is Paid For
4-5
1-Page Summary of New Pell Grant Increase
6
1-Page Summary of $10,000 Education Tax Deduction
7
Chart on Cost of College as a Percentage of Family Income
8
Chart on State-by-State 2-Year College Tuition Costs
9
BACKGROUND ON HOPE SCHOLARSHIPS
Overview. Currently, millions of Americans have access to college through Pell Grants
and the federal student loan program, including the President's Direct Student Loan
program, but the average student with loans now graduates $10,000 in debt and many more
may not go on to college because they are reluctant to borrow so much money. The annual
cost of a public college increased from 9% of the typical family's income in 1979 to 14%
in 1994. [Education Department, 1996] The President's HOPE Scholarship Plan makes it clear
that two years of college should be as universal as high school, and builds on his
comprehensive program to guarantee that a college education is both accessible and
affordable to all Americans at any time in their life.
Guaranteed Average Tuition For Two Years of Community College: The HOPE
Scholarship Plan will ensure that students can get up to a $1,500 refundable tax
credit, a Pell Grant, or a combination for tuition in their first year after high school,
and another $1,500 in their second year if they work hard, stay off drugs, and earn
at least a "B" average. This $1,500 credit is $300 above the national average
community college tuition and would make tuition free for 67% of all community
college students. It would enable states that set tuition within $300 of the national
average to make community college tuition free for every student. The credit would
be indexed to inflation each year to protect its value.
$1,500 For The First Two Years At Any College For Students Who Earn At
Least a B Average: While the HOPE Scholarship tax credit is priced to pay for the
full cost of two years of community college tuition for students who earn at least a
"B" average in their freshman year, the $1,500 credit can be applied to tuition at any
college, from a two-year public community college to a four-year private college.
This $1500 tax credit will be a substantial downpayment for parents sending their
children to colleges with higher tuition.
$750 for Half-Time Students: The HOPE Scholarship Tax Cut is designed to assist
parents and current workers who want to further their education. Those who can
only go to school half-time because of their job or parenting obligations, are eligible
for a $750 refundable credit per year until they have completed two full years of
college. The "B" average requirement also applies to half-time students.
Includes 1-Year Certificate Programs: Students at training and technical
programs eligible for Pell Grants under Title IV of the HEA are also eligible HOPE
Scholarships.
Interaction with the $10,000 Education Tax Deduction: Students would receive
either the HOPE scholarship or the $10,000 tax deduction in any year. Eligible
students in their first two years or their parents can choose between either the Hope
Scholarship or the deduction. The deduction is up to $10,000 a year per family.
The credit is $1,500 per student.
2
Costs: The HOPE Scholarship Plan is fully paid for within the President's balanced
budget plan. The President's initial proposal for a $10,000 deduction cost $35
billion over six years. The new proposal, with the $1,500 tax credit, costs $42.9
billion over 6 years. To offset this increase, the Administration proposes to reduce
sales source rule benefits, apply an international departure fee, and auction radio
DARS spectrum.
In addition, the $10,000 deduction is also more targeted by conforming the income
limits to match the income limits for the proposed expanded IRAs. The deduction
had been phased out for joint filers with income between $100,000 and $120,000,
and for single filers with income between $70,000 and $90,000. It will now be
phased out for joint filers with income between $80,000 and $100,000, and for
single filers with incomes between $50,000 and $70,000.
"B" Average: To remain eligible for the credit, students must earn at least a "B"
average or a 2.75 grade point average in their first year of college or post-secondary
school. Based on the National Post-Secondary Student Aid study, more than half of
students earn a 2.75 average or better.
Students Must Stay Drug-Free: A student is ineligible if, in accordance with the
Drug-Free Post-Secondary Education Act of 1990, he or she has been convicted of
committing certain felony offenses involving marijuana, controlled substances, or
dangerous drugs.
Administration: Administrative issues such as the timing and delivery of the tax
credit will require consultation with states and schools to ensure that the plan
provides maximum flexibility and efficiency and local control rather than top-down
administration. The Treasury Department and Department of Education will work
with Members of Congress, Governors, school superintendents, and college financial
aid administrators to design the most flexible and efficient system, and to ensure
against excessive and abusive tuition increases.
Challenge to States. The President is challenging states to build on the HOPE
Scholarship Plan by following Georgia's lead and making scholarships available for
four years of college for students who maintain a "B" average. The President is also
challenging the 17 States that set tuition above $1,500 to reduce costs so that with
the HOPE Scholarship tax cut, community college will be free for every student.
3
Paying For America's HOPE Scholarship Tax Cut
Balanced Budget Framework. The President's new America's HOPE Scholarship Tax Cut
proposal is completely paid for with specific budget savings so that the President's overall plan
continues to reach balance in fiscal year 2002.
Current Education Tax Deduction: $35 Billion FY 1997-2002. The President's current
education tax cut -- $10,000 deduction -- costs $35 billion over 6 years (FY 1997-2002) and is
paid for within the balanced budget plan that has been certified as reaching balance in 2002 by
the Congressional Budget Office.
New Proposal: $42.9 Billion FY 1997-2002. The new combined proposals would be $42.9
billion. The breakout of these costs are as follows:
FY 1997-2002 Cost
America's HOPE Scholarship Tax Cut
$25.1 Billion
$10,000 Education Tax Deduction
$17.8 Billion
TOTAL COST
$42.9 Billion
The additional $7.9 billion in net new costs are paid for with specific savings listed below:
FY1997-2002 Savings
Reduction of Sales Source Rule Benefits
$3.5 Billion
International Departure Fee
$2.3 Billion
Auction Radio DARS Spectrum
$2.1 Billion
TOTAL SAVINGS
$7.9 Billion
NOTE:
While the President's new America's HOPE Scholarship Tax Cut has gross costs of $25.1
billion over FY 1997 to 2002, the net increase in the President's overall education tax cut is
only $7.9 billion because of savings that take place in the President's $10,000 education tax
deduction.
Most of those savings ($10.7 billion) come from families choosing the HOPE tax credit
over the $10,000 education tax deduction.
The remaining savings ($6.5 billion) come from lowering the phase out income limits
for joint filers from $120,000 to $100,000 to conform to the Administration's expanded
IRA proposal.
4
BACKGROUND ON NEW SAVINGS MEASURES
SAVINGS
REDUCTION OF SALES SOURCE RULE BENEFITS
$3.5 Billion
(FY 1997 - 2002)
Description: The proposal would limit the ability of multinational corporations to decrease
their U.S. tax liability inappropriately, by reducing the amount of export sales income that
they may treat as derived from foreign sources. Under current law, the sales source rule
generally permits multinational corporations that also exports U.S. products to treat half of
their export profits as income from sales activities, and therefore as foreign source income,
even though the economic activity that produced the export profits may have occurred
entirely within the United States. The source of income is relevant to the determination of a
U.S. taxpayer's foreign tax credit. By increasing the amount of income treated as foreign
source, a taxpayer with "excess" foreign tax credits can increase its utilization of foreign tax
credits and therefore pay less U.S. tax on the same income. The sales source rule of present
law provides generous tax benefits to U.S. exports that also conduct foreign manufacturing or
other high-taxed foreign operations, but provides no benefit at all to U.S. exporters that
conduct all their business activities within the United States. The proposal would reduce the
percentage of export profits that generally is treated as sales (and thus foreign) income from
50 percent to 25 percent.
The provision would be effective for taxable years beginning after the date of enactment.
SAVINGS
AUCTION RADIO DARS SPECTRUM
$2.1 Billion
(FY 1997 - 2002)
Description: This savings proposal would auction 25Mhz of spectrum currently reserved for
digital audio radio services (DARS) for subscription based wireless services. The FCC had
originally allocated 50 Mhz for DARS, which would provide 4 channels of a national,
subscription-based radio service. Due to interference problems with Canada, DARS would
be allocated 2 channels instead of 4, freeing up 25 Mhz for auction. The revenues of
auctioning 25 Mhz of spectrum are estimated at $2.1B by CBO and OMB. These auctions
could be done in any year.
SAVINGS
INTERNATIONAL DEPARTURE FEE
$2.3 Billion
(FY 1997 - 2002)
Description: The President's FY '97 Budget assumes that the currently expired aviation
excise taxes, including the $6 per passenger international departure fee, will be reinstated in
August, 1996. This offset proposal would increase the per passenger tax form $6 to $16.
5
BACKGROUND ON PELL GRANT INCREASE
Overview. The Pell Grant is the main federal grant that allows millions of low-income and
middle class families to have access to college. Despite the fact that the President's budget
contains well over $200 billion in discretionary cuts over 7 years, the President's balanced
budget builds in a 33% increase in the maximum Pell Grant award from FY1995 to
FY2002.
$2 Billion Program Deficit Eliminated. The projected $2 billion Pell Grant
program deficit was eliminated within the first two years of the Clinton
Administration.
Record Increase in FY1997: The President's fiscal year 1997 budget calls for
funding to support a $2,700 maximum Pell Grant -- nearly a 10% increase over the
current level -- which would provide more than 3.7 million students with Pell Grants
averaging $1,706 in 1997. This proposed increase in the maximum Pell Grant
Award would be the largest increase in the program's 25-year history.
President Announces Yearly Pell Grant Increases: The President's balanced
budget contains the following seven-year increase in the maximum Pell Grant
awards.
Fiscal Year
Maximum Award
1995
$2,340
1996
$2,470
1997
$2,700
1998
$2,780
1999
$2,863
2000
$2,949
2001
$3,037
2002
$3,128
President's 7-Year Pell Grant Increase Could Provide 2.7 Million More Grants Than
Republican Budget Resolutions: Both the House and Senate FY1997 Budget Resolutions
freeze the budget authority for the Pell Grant program from FY1997 -FY2002. This means
that Republicans would provide 2.7 million fewer Pell grants over 6 years, and deny 191,000
students Pell grants in FY1997 alone compared to the President's balanced budget plan.
Under the funding freeze assumed in the Republican resolutions, the maximum Pell grant
award would decrease 17%, from $2,470 in FY1996 to $2,055 in FY2002.
Last year, House Republicans tried to cut the Pell Grant program by $450 million, denying
Pell Grants to 380,000 students in 1996 alone.
6
$10,000 EDUCATION DEDUCTION
Breadth of Application: The $10,000 Education Deduction would be for every
taxpayer for the tuition at any education or training program that is at least half-time
or related to a worker's career.
Supplements Hope Scholarship Tax Cut: In any year, students in the 13th and
14th grades would receive either the HOPE Scholarship or the $10,000 tax
deduction. Eligible students in their first two years or their parents can choose
between either the HOPE Scholarship or the deduction. Students that relied on the
$1,500 tax credit in the first two years of college would still be eligible for the
$10,000 deduction in the remaining years of college or graduate school or for
qualified lifelong learning. Students not eligible for the tax credit would still be
eligible for the $10,000 deduction. The deduction is up to $10,000 a year per family.
The credit is $1,500 per student.
Income Limits: For joint filers, the deduction would be phased out at incomes
between $80,000 and $100,000. For single filers, the deduction would be phased
out between $50,000 and $70,000.
Unlimited Number of Years: While the HOPE Scholarship is for the first two
years of college, the $10,000 tax deduction is available any year a family had
education expenses. For example, a family of four with an income of $40,000 and
five years of tuition expenses totaling $10,000 would receive a $7,500 tax cut over
that five-year period.
7
Cost of College As Percent
of Typical Family Income
Public Institutions
Private Institutions
20
40
18
35
Percent of median family income
(Families with children 6 to 17 years old)
30
16
25
14
20
12
15
10
10
8
1979
1982
1985
1988
1991
1994
1979
1982
1985
1988
1991
1994
Source: Department of Education, The Condition of Education 1996, p 76.
*
Includes Calculation of Tuition, Room and Board
8
Tuition and Fees at Public Two-Year Institutions
Average
Share of Average
(1994-95)
Tuition Covered
State
Tuition
By $1,500 Credit
AK
$1,320
100%
AL
$621
100%
AR
$865
100%
AZ
$727
100%
CA
$363
100%
CO
$1,227
100%
CT
$1,520
99%
DE
$1,266
100%
FL
$1,064
100%
GA
$1,019
100%
HI
$499
100%
IA
$1,696
88%
ID
$990
100%
IL
$1,188
100%
IN
$1,797
83%
KS
$1,014
100%
KY
$1,009
100%
LA
$769
100%
MA
$2,435
62%
MD
$1,857
81%
ME
$2,188
69%
MI
$1,411
100%
MN
$1,965
76%
MO
$1,227
100%
MS
$934
100%
MT
$1,414
100%
NC
$581
100%
ND
$1,666
90%
NE
$1,083
100%
NH
$2,315
65%
NJ
$1,762
85%
NM
$601
100%
NV
$835
100%
NY
$2,142
70%
OH
$2,105
71%
OK
$1,123
100%
OR
$1,328
100%
PA
$1,751
86%
RI
$1,686
89%
SC
$1,022
100%
SD
$2,379
63%
TN
$907
100%
TX
$672
100%
UT
$1,358
100%
VA
$1,382
100%
VT
$2,196
68%
WA
$1,334
100%
WI
$1,721
87%
WV
$1,372
100%
WY
$894
100%
Source: U.S. Department of Education. Estimate of share of tuition and fees
covered by the HOPE Scholarship if it has been available in 1994-1995.
America's HOPE Scholarship Tax Cut
Background Materials
Page
2-Page Background on the Georgia HOPE Scholarships
10
1-Page Background on the Arkansas Academic Challenge Scholarships
11
Census Report: "More Education Means Higher Career Earnings"
12-13
2-Page Summary on the Returns of Education Investments
14-15
GEORGIA HOPE SCHOLARSHIPS
"The most far-reaching scholarship program in the nation"
-- Los Angeles Times, April 5, 1994
PROGRAM DESCRIPTION: The Georgia HOPE program, established by Governor Zell Miller in
April 1993, provides full tuition, fees, and books at any in-state public college to any Georgia student
who graduates from high school and maintains a B average or better in college.
A TRULY UNIQUE PROGRAM THAT PROVIDES HOPE FOR GEORGIA STUDENTS:
Governor Zell Miller. "Of all the things that I've ever been involved with, It's the one thing that
I'm most proud of. We are making college accessible in a way it never has been before in
Georgia." [February 12, 1995]
Atlanta Journal Constitution. "Where else in America can children know, from elementary school
on, that if they work hard and earn a 3.0 average by graduation from high school, they can fulfill
the dream of going to college whether their family has money or not? That's the opportunity
created by Georgia's HOPE scholarship program. ..It's a marvelous thing, and it is a solemn
promise from the state to its young residents. It is not, however, an entitlement requiring no effort.
Students must meet the standards to get the scholarships, and they must keep up the struggle to hold
onto them once they enter college." [Atlanta Journal Constitution, September 7, 1994]
Barry Fullerton, Vice Chancellor, University of Georgia. "It's an ingenious program. It's a
great public policy, and it has benefited thousands of students." The Courier-Journal, April 9, 1995]
Orlando Sentinel. "Imagine a state where every student with a B average gets a full college
scholarship. Don't have that fanciful an imagination? You don't need one. You just need to look
north, to Georgia." [Orlando Sentinel, April 8, 1996]
Atlanta Journal Constitution. "It is, quite simply, an effort to help Georgia's young people become
well-educated, productive citizens." [Atlanta Journal Constitution, December 16, 1994]
ELIGIBILITY REQUIREMENTS: Students must meet the following requirements:
2-Year and 4-Year Public Colleges/Universities
For a HOPE Scholarship to a 4-year public college, graduating high school students must have
a 3.0 cumulative grade point average on a 4.0 scale or an 80 numeric average and obtain a
diploma with a State of Georgia College Preparatory Seal. (In order to obtain the college preparatory
seal, students must meet and graduate from the required core college preparatory curriculum.)
For a HOPE Scholarship to a public college, graduating high school students who do not
meet the 3.0 grade in the core curriculum, must have a 3.2 cumulative grade average on a
4.0 scale or an 85 numeric average in other curriculum tracks.
Students who maintain a B average in a 4-year public college and stay off drugs can
continue to receive the same level of support for up to four years.
10
Students whose college grades fall below 3.0 can requalify a year later if they bring their
grades back up above 3.0.
Students who are not eligible for HOPE scholarships upon graduation of high school, or
who enter college later in life, can obtain HOPE scholarships after their sophomore year if
they obtain a cumulative 3.0 grade average.
2-Year and 4-Year Private Colleges/Universities
Students receive $3,000 a year in HOPE money, but only if they have and maintain a B
grade average.
Technical Schools and Adult Education Institutes
All students in a diploma or certificate program at a Georgia technical institute are eligible for
HOPE.
Universal Requirements
All students must stay drug free. A Student is ineligible if, in accordance with the Drug-
Free Postsecondary Education Act of 1990, he/she has been convicted for committing
certain felony offenses involving marijuana, controlled substances, or dangerous drugs.
KEY FACTS:
During the first 3 years of the program (1993-1995), nearly 200,000 Georgia students
qualified for and received some form of HOPE scholarship.
HOPE Scholarship Students 1993-1996
University System
60,682
Technical Institutes
74,830
Private Colleges
45,423
GED Recipients
9,066
TOTAL
190,001
In the 1995-1996 school year, 70 percent of University of Georgia freshman students
received a Georgia HOPE scholarship.
The racial composition of those receiving HOPE scholarships mirrors that of the overall
university system (75% white, 20% black).
84% of HOPE students who enrolled in public colleges in Fall 1994 were still in college in
Fall 1995, versus 74% of all students.
A 1995 poll by Georgia State University found that 77 percent of Georgia residents who
were aware of the program thought it would lead parents to take a more active interest in
their children's education.
Since the start of the program, enrollment in Georgia's technical and adult education
institutions has increased 24 percent. Enrollment increased 8 percent in 1995, alone.
11
ARKANSAS ACADEMIC CHALLENGE SCHOLARSHIPS
"We need more of our young people going to college and we need them to
succeed and stay in college. This program will help them accomplish that goal."
-- Governor Bill Clinton, July 12, 1991
PROGRAM DESCRIPTION: Governor Bill Clinton signed the Arkansas Academic Challenge Scholarships
into law on May 5, 1991, creating a guaranteed scholarship plan to promote academic achievement and
encourage academically prepared Arkansas high school graduates to enroll in the state's colleges and
universities. Through the 1993-1994 school year, the scholarship provided the lesser of $1000 or the annual
tuition. For the 1994-1995 school year, the scholarship was increased to provide annually the lesser of $1500
or the annual tuition. The scholarship is renewable for up to 3 more years, provided the student meets the
continuing eligibility standards established by the Arkansas Department of Higher Education.
REQUIREMENTS:
Income Requirement. For families with one dependent child, income cannot exceed $30,000 per year.
An extra $5,000 of family income is allowed per child.
Grade-Based Awards. Awards are based on the applicant's meeting minimum standards with regard
to the ACT composite score, grade point average (GPA) in the pre-collegiate core curriculum.
*
Applicants must have a composite ACT score of 19 and a grade point average of 2.50 on a 4.00
scale, in the precollegiate core curriculum.
*
Applicants not meeting either the grade point average or ACT requirements may still qualify for
the Academic Challenge Scholarship if their combined ACT score and grade point average meet
satisfactory levels when applied to a selection index (i.e. a student with a 15 ACT would have to
achieve a minimum 3.25 GPA; a student with a 26 ACT would only have to have a 2.0 GPA.)
All students must stay drug free. A student is ineligible if, in accordance with the Drug-Free
Postsecondary Education Act of 1990, he/she has been convicted for committing certain felony offenses
involving marijuana, controlled substances, or dangerous drugs.
Students must maintain their grades once in college. In order to retain their scholarship for an
additional year, students keep their grades above state-specified levels.
KEY FACTS:
In 1987, 32 percent of Arkansas students who took the ACT had completed high school
pre-college core curriculum. By 1992, the first year of the Academic Scholarships Program, that
percentage rose to 48.
The number of high school students qualifying for and receiving the Arkansas Achievement
Scholarship has increased dramatically each year. In the 1991-1992 school year, there were 1,024
recipients. In the 1994-1995 school year, 5,383 students received awards.
While Bill Clinton was governor of Arkansas, the percentage of high school students going on to
college increased by 50% (from 38.2% in 1982 to 57.3% in 1992). The Arkansas "going rate" has
remained steady since 1992.
12
Bureau
Statistical
of the
Census
Brief
More Education Means
Higher Career Earnings
Is it worth it to stay in school and
Professional degree holders
how we did it. First, we defined a
earn a higher degree? As data
have the highest earnings.
worklife as lasting from ages 25 to
from the Census Bureau's Current
Adults aged 18 and over who
64 - a 40-year period. Then we
Population Survey show, the an-
worked sometime during 1992
began our calculations.
swer is a resounding yes!
earned an average of $23,227 that
We started with high school
This Brief examines the relation-
year. But this average masked the
dropouts. We took the 1992
ship between education and earn-
fact that the more education they
mean earnings figure for persons
ings during the 1992 calendar year;
received, the more money they
of this group who were aged 25 to
it also demonstrates how the rela-
made. (See graph below.) Earnings
34 and multiplied it by 10. The
tionship has changed over the last
ranged from $12,809 for high
same thing was done for those
two decades. Additionally, it pro-
school dropouts to $74,560 for
aged 35-44, 45-54, and 55-64. Then,
vides estimates (by level of educa-
those with professional degrees
the four 10-year totals were added
tion) of the total earnings adults
(such as M.D.'s and J.D's).
up. The result was an estimated
are likely to accumulate over the
lifetime earnings total for high
course of their working life.
Earnings differences compound
school dropouts. This process was
over one's lifetime.
then repeated for each of the
You'll see that more education
Using 1992 data, we estimated the
other seven educational levels.
means greater earnings over a
earnings a person would accrue
These estimates dramatically illus-
year's time; over the length of
over a typical "worklife." Here's
trate the large earnings differences
one's working life, these differ-
ences become enormous. More-
over, this relationship between
Education Continues to be the Ticket
earnings and education is now
to Higher Earnings
even stronger than it was back
in the 1970's.
Mean annual earnings for persons aged 18
and over, by level of education: 1992
We're more educated than ever.
Professional
$74,560
In 1993, about four-fifths of
American adults aged 25 and over
Doctorate
$54,904
had at least completed high school;
over one in five had a Bachelor's
Master's
degree or higher. Both figures are
$40,368
all-time highs.
Bachelor's
$32,629
/ COMPANY
Associate
$24,398
Some college,
/
$19,666
no degree
I
of
High school
SB/94-17
graduate only
$18,737
Issued August 1994
Not a high
school graduate
$12,809
U.S. Department of Commerce
Economics and Statistics Administration
BUREAU OF THE CENSUS
13
BUREAU OF THE CENSUS
STATISTICAL BRIEF
August 1994
that develop between educational
tion, and high school graduates just
Education in the United States,
levels over the long term. As the
barely managed to keep pace. Real
Series 1990, CP-3-4. Stock No.
graph below shows -
wages rose only for persons with
003-024-08742-1. $41.
education beyond the high school
High school dropouts would
level. If these patterns continue,
To order any of these publications,
make (in 1992 dollars) around
lifetime earnings differences be-
call the U.S. Government Printing
$600,000 during their lifetime.
tween low and high levels of educa-
Office (202-512-1800).
tion will become even more dra-
Completing high school would
matic than current levels indicate.
Contacts:
mean about another $200,000.
Earnings and education -
More information:
Robert Kominski
Persons who attended some col-
lege (but did not earn a degree)
Several Census Bureau reports
301-763-1154
have information on the relation-
might expect lifetime earnings in
the $1 million range.
ship between earnings and educa-
Statistical Briefs -
tion. These include -
Robert Bernstein
301-763-1584
You could tack on nearly anoth-
Educational Attainment in the
er one-half million dollars for hold-
United States: March 1993 and
This Brief is one of a series that
ers of a Bachelor's degree.
1992, Current Population Reports,
presents information of current
Series P20-476. Stock No. 803-
policy interest. It may include
Doctorate and professional de-
005-00077-0. $8.50.
data from businesses, households, or
gree holders would do even better,
other sources. All statistics are sub-
at just over $2 million and $3 mil-
What's It Worth? Educational
ject to sampling variability, as well
lion, respectively.
Background and Economic Status:
as survey design flaws, respondent
Spring 1990, Current Population
classification errors, and data proc-
Lifetime differences may become
Reports, Series P70-32. Stock No.
essing mistakes. The Census Bureau
even more striking in the future.
803-044-00020-1. $3.50.
has taken steps to minimize errors,
These estimates of lifetime earn-
and analytical statements have been
Money Income of Households,
tested and meet statistical standards.
ings assume that 1992 earnings lev-
Families, and Persons in the United
However, because of methodological
els will stay in effect throughout
States: 1992, Current Population
differences, use caution when
one's worklife. But the reality is
Reports, Series P60-184. Stock No.
comparing these data with data
that the value of the dollar contin-
803-005-30031-5. $19.
from Other sources.
ually changes. And recent history
shows that the value of higher lev-
els of education has risen faster
than that of lower levels. When we
Go to College, Make a $Million
compare 1975 and 1992 figures, we
see that average earnings -
Estimates of worklife earnings, by level of education: 1992
(In thousands of dollars)
Doubled for high school drop-
outs (from $6,014 to $12,809).
Rose 2.5 times for those who
$3,013
were high school graduates only
(from $7,536 to $18,737).
Nearly tripled for holders of
$2,142
Bachelor's degrees (from $11,574
to $32,629).
$1,619
$1,421
Tripled for those who held ad-
vanced degrees (from $15,619 to
$993
$1,062
$48,653).
$821
$609
Keep in mind that in 1992 the con-
sumer price index (which measures
yearly changes in the value of the
Not a
High
Some
Associate
Bache-
Master's
Doctorate
Pro-
dollar) was 140, 2.5 times what it
high
school
college,
lor's
fessional
was in 1975. This means that the
school
graduate
no
graduate
only
degree
earnings of high school dropouts
did not even keep up with infla-
14
ECONOMIC RETURNS TO INVESTMENTS
IN EDUCATION AND TRAINING
Empirical studies indicate that each additional year of formal schooling is associated
with a 6 to 12 percent increase in annual earnings later in life. [Kane and Rouse, 1995;
Ashenfelter and Krueger 1994; Angrist and Krueger, 1991]
This earnings benefit is not limited to education at four-year colleges; it also accrues
from attendance at community colleges. [Thomas Kane and Cecilia Rouse, Labor Market Returns
to Two and Four-Year College: Is a Credit a Credit and Do Degrees Matter American Economic Review,
Vol. 85, No. 3, 1995.]
The wage premium for better-educated workers has expanded dramatically over the past
fifteen years. In 1979, full-time male workers aged 25 and over with at least a
bachelors degree earned on average 49 percent more per year than comparable workers
with only a high school degree. By 1993, the difference had nearly doubled, to 89
percent. [Economic Report of the President 1996, page 191.]
Economists have long argued over whether education causes higher earnings, or whether
those with better earnings prospects -- for example, because of greater innate ability --
simply consume more education. Recent analyses of compulsory schooling laws (which
force students to consume more education regardless of their innate ability) and wage
differentials between twins (who should have similar levels of innate ability) strongly
suggest that schooling actually leads to higher earnings. [Joshua Angrist and Alan Krueger,
Does Compulsory School Attendance Affect Schooling and Earnings; Quarterly Journal of Economics,
November 1991; Orley Ashenfelter and Alan Krueger, Estimates of the Economic Returns to Schooling
from a New Sample of Twins, American Economic Review, December 1994.]
A college graduate is 43 percent more likely to be working in a job with a pension plan
than a high school graduate and a college graduate is 27 percent more likely to have a
job with health care coverage than a high school graduate. [Based on data from the Bureau of
Labor Statistics, various years, Current Population Survey.]
Since the early 1980s, high skill jobs are growing the fastest. Jobs requiring high skill
levels grew by 32% over the period 1984-1994 while jobs requiring low skill levels
grew by only 7%. [Based on data from the Bureau of Labor Statistics, various years, Current
Population Survey.]
15
Job displacement studies show that better-educated workers are less likely to lose their
jobs than less-educated workers, although this advantage has declined over time. If
better-educated workers do lose their jobs, they are more likely to find new jobs (which
are more likely to be full-time), and they tend to suffer smaller proportional earnings
losses than less-educated workers. [Henry S. Farber, The Changing Face of Job Loss in the United
States, 1981-1993, Department of Economics, Princeton University, March 12, 1996.]
Training workers also has significant payoffs. According to academic research
conducted by Lisa Lynch before she became Chief Economist at the Labor Department,
a year of either on-the-job training or formal training for workers raises wages by about
as much as a year of college education. [Lisa Lynch, Private Sector Training and the Earnings of
Young Workers, American Economic Review, Vol. 82, No. 1, 1992.]
Other studies conclude that firm-provided training seems most effective when combined
with other innovative workplace practices. [U.S. Department of Labor, High Performance Work
Practices and Firm Performance, 1993; David Levine, Reinventing the Workplace: How Business and
Employees Can Both Win (Washington: Brookings, 1993).]
Education and training boost economic growth. Data from the Bureau of Labor
Statistics suggest that the rise in the average educational attainment of the workforce
accounted for one-fifth of the annual growth in productivity between 1963 and 1992.
[Economic Report of the President 1996, pages 191-2.]
International evidence reveals that, all else equal, those nations with the highest school
enrollment rates in the early 1960s tended to enjoy the most robust growth in
subsequent decades. [N. Gregory Mankiw, David Romer, and David Weil, A Contribution to the
Empirics of Economic Growth, Quarterly Journal of Economics, Volume 107, May 1992.]
16
QUESTIONS AND ANSWERS
AMERICA'S HOPE SCHOLARSHIPS
For Internal Use
1. Why are you making a new proposal now? What was wrong with your original one?
The President has worked throughout his career and his administration to expand
access to college. He put in place two new programs to make it easier to go to
college (National Service and Direct Lending), increased Pell Grants, and proposed a
$10,000 deduction, honors scholarships for the top 5% of every high school class, and
expanding work study to 1 million students over the next five years. Today, he is
taking another important step that will help make two years of college as universal as
four years of high school. The President is so determined to expand college
opportunity that he is putting forward $8 billion in new budget savings to pay for this
new proposal.
2. Aren't you just trying to pre-empt Senator Dole?
We have no idea what Senator Dole plans to propose, if anything. The President is
only interested in setting forth his vision for the country -- and giving more
Americans the chance to go to college is central to that vision. He also believes that
any tax cut must be targeted and paid for. We can't go back to the days of something
for nothing.
3. Isn't this just an election-year gimmick?
The President is giving a series of commencement addresses on the challenges we face
as we move into the next century: restoring the social fabric; keeping America the
strongest force for freedom and democracy; promoting economic growth; strengthening
the family. He came to Princeton today to give a serious, thoughtful speech that laid
out his vision of how to promote economic growth and raise incomes.
4. How are you going to pay for this?
The Hope Scholarship Tax Credit costs $25.1 billion over six years; the $10,000
deduction now costs $17.8 billion -- for a total of $42.9 billion, an increase of $7.9
billion over the proposal in the President's balanced budget plan. To offset those new
costs, the Administration is proposing new budget savings: Auctioning radio spectrum
($2.1b); increasing international departure tax ($2.3b); reduction of sales source rule
benefits ($3.5b). The cost of the deduction is reduced largely because more people
make use of the credit, and also by lowering the income limits to conform to the
income limits on the Administration's expanded IRA proposal (i.e. from $120,000 to
$100,000).
1
5. Doesn't this trigger off in 2001?
The President is committed to a permanent proposal to offer the America's Hope
Scholarship tax cut. This new proposal is completely paid for with new offsets. Under
OMB scoring, this new tax credit would be extended indefinitely. If Congressional
Budget Office economic assumptions come into effect and there are less revenues to
offset the tax cut, the Administration will put forward additional spending cuts for
FY2001 and FY2002 to ensure both that the tax credit continues and that the budget
stays in balance.
6. Can you take both the credit and the deduction at the same time?
The credit is $1,500 per student. The deduction is $10,000 per family. A family
could use the deduction for one or more children and the credit for others. No single
individual or family member, however, could use both the credit and the deduction for
the same student.
7. Isn't it strange that under your proposal a family in the 28% bracket with $10,000 in
tuition would get over $2000 in tax cuts even without attaining a B average?
The vast majority of families will choose the Hope Scholarship tax credit and find it
far to their financial advantage. (The credit is estimated to cost $25.1 billion; the
deduction $17.8 billion.) For example, for a family that makes $45,000 and has
tuition of $2000, the credit would be worth $1200 a year more than the deduction.
All families in the 28% bracket with tuition under $5300 will find the credit to their
advantage. And families with two or more children who are near the maximum will
often find it to their advantage -- because they can take the credit for one child and
the deduction for another.
8. Why did you not apply the B average to the deduction?
The President's $10,000 deduction was designed to make a major statement for all
education: investment in human capital should be given a tax deduction just as
investment in physical capital is. The $10,000 deduction is for families and it is for
any type of education that contributes to one's career advancement -- college,
graduate school, career training. The Hope Credit is a special tax credit designed to
specifically encourage all Americans to see that two years of college must be a
national norm, and it is designed to say to every state: if you offer tuition within $300
of the national norm, you can now provide free community college tuition for all of
your residents.
2
9. Will this plan lead to grade inflation?
So far, in Georgia, there is little if any evidence of that. In fact, many students have
dropped off after the first years.
10. This plan is supposed to be based on the Georgia plan, yet unlike Georgia, it does
not require a B average in High School.
Isn't this a different model?
The core of Georgia's plan is to expand access to college
and challenge
students to make the most of it. Like our plan, it requires students to maintain a B
average in college in order to remain eligible.
Because they have made the bold decision to provide free tuition for four years of
public college, they ask for a B average before making a student eligible for these
extensive benefits.
The President's plan, gives everyone a chance for a start, and then like Georgia,
requires a B average to maintain benefits. With this new federal partnership, the
President's plan will make it more possible for more and more states to follow
Georgia's move and provide four years of college tuition for those who perform at a B
average.
3
QUESTIONS AND ANSWERS
AMERICA'S HOPE SCHOLARSHIPS
For Internal Use
1. Why are you making a new proposal now? What was wrong with your original one?
The President has worked throughout his career and his administration to expand
access to college. He put in place two new programs to make it easier to go to
college (National Service and Direct Lending), increased Pell Grants, and proposed a
$10,000 deduction, honors scholarships for the top 5% of every high school class, and
expanding work study to 1 million students over the next five years. Today, he is
taking another important step that will help make two years of college as universal as
four years of high school. The President is so determined to expand college
opportunity that he is putting forward $8 billion in new budget savings to pay for this
new proposal.
2. Aren't you just trying to pre-empt Senator Dole?
We have no idea what Senator Dole plans to propose, if anything. The President is
only interested in setting forth his vision for the country -- and giving more
Americans the chance to go to college is central to that vision. He also believes that
any tax cut must be targeted and paid for. We can't go back to the days of something
for nothing.
3. Isn't this just an election-year gimmick?
The President is giving a series of commencement addresses on the challenges we face
as we move into the next century: restoring the social fabric; keeping America the
strongest force for freedom and democracy; promoting economic growth; strengthening
the family. He came to Princeton today to give a serious, thoughtful speech that laid
out his vision of how to promote economic growth and raise incomes.
4. How are you going to pay for this?
The Hope Scholarship Tax Credit costs $25.1 billion over six years; the $10,000
deduction now costs $17.8 billion -- for a total of $42.9 billion, an increase of $7.9
billion over the proposal in the President's balanced budget plan. To offset those new
costs, the Administration is proposing new budget savings: Auctioning radio spectrum
($2.1b); increasing international departure tax ($2.3b); reduction of sales source rule
benefits ($3.5b). The cost of the deduction is reduced largely because more people
make use of the credit, and also by lowering the income limits to conform to the
income limits on the Administration's expanded IRA proposal (i.e. from $120,000 to
$100,000).
1
5. Doesn't this trigger off in 2001?
The President is committed to a permanent proposal to offer the America's Hope
Scholarship tax cut. This new proposal is completely paid for with new offsets. Under
OMB scoring, this new tax credit would be extended indefinitely. If Congressional
Budget Office economic assumptions come into effect and there are less revenues to
offset the tax cut, the Administration will put forward additional spending cuts for
FY2001 and FY2002 to ensure both that the tax credit continues and that the budget
stays in balance.
6. Can you take both the credit and the deduction at the same time?
The credit is $1,500 per student. The deduction is $10,000 per family. A family
could use the deduction for one or more children and the credit for others. No single
individual or family member, however, could use both the credit and the deduction for
the same student.
7. Isn't it strange that under your proposal a family in the 28% bracket with $10,000 in
tuition would get over $2000 in tax cuts even without attaining a B average?
The vast majority of families will choose the Hope Scholarship tax credit and find it
far to their financial advantage. (The credit is estimated to cost $25.1 billion; the
deduction $17.8 billion.) For example, for a family that makes $45,000 and has
tuition of $2000, the credit would be worth $1200 a year more than the deduction.
All families in the 28% bracket with tuition under $5300 will find the credit to their
advantage. And families with two or more children who are near the maximum will
often find it to their advantage -- because they can take the credit for one child and
the deduction for another.
8. Why did you not apply the B average to the deduction?
The President's $10,000 deduction was designed to make a major statement for all
education: investment in human capital should be given a tax deduction just as
investment in physical capital is. The $10,000 deduction is for families and it is for
any type of education that contributes to one's career advancement -- college,
graduate school, career training. The Hope Credit is a special tax credit designed to
specifically encourage all Americans to see that two years of college must be a
national norm, and it is designed to say to every state: if you offer tuition within $300
of the national norm, you can now provide free community college tuition for all of
your residents.
2
9. Will this plan lead to grade inflation?
So far, in Georgia, there is little if any evidence of that. In fact, many students have
dropped off after the first years.
10. This plan is supposed to be based on the Georgia plan, yet unlike Georgia, it does
not require a B average in High School.
Isn't this a different model?
The core of Georgia's plan is to expand access to college
and challenge
students to make the most of it. Like our plan, it requires students to maintain a B
average in college in order to remain eligible.
Because they have made the bold decision to provide free tuition for four years of
public college, they ask for a B average before making a student eligible for these
extensive benefits.
The President's plan, gives everyone a chance for a start, and then like Georgia,
requires a B average to maintain benefits. With this new federal partnership, the
President's plan will make it more possible for more and more states to follow
Georgia's move and provide four years of college tuition for those who perform at a B
average.
3
QUESTIONS AND ANSWERS
AMERICA'S HOPE SCHOLARSHIPS
For Internal Use
1. Why are you making a new proposal now? What was wrong with your original one?
The President has worked throughout his career and his administration to expand
access to college. He put in place two new programs to make it easier to go to
college (National Service and Direct Lending), increased Pell Grants, and proposed a
$10,000 deduction, honors scholarships for the top 5% of every high school class, and
expanding work study to 1 million students over the next five years. Today, he is
taking another important step that will help make two years of college as universal as
four years of high school. The President is so determined to expand college
opportunity that he is putting forward $8 billion in new budget savings to pay for this
new proposal.
2. Aren't you just trying to pre-empt Senator Dole?
We have no idea what Senator Dole plans to propose, if anything. The President is
only interested in setting forth his vision for the country -- and giving more
Americans the chance to go to college is central to that vision. He also believes that
any tax cut must be targeted and paid for. We can't go back to the days of something
for nothing.
3. Isn't this just an election-year gimmick?
The President is giving a series of commencement addresses on the challenges we face
as we move into the next century: restoring the social fabric; keeping America the
strongest force for freedom and democracy; promoting economic growth; strengthening
the family. He came to Princeton today to give a serious, thoughtful speech that laid
out his vision of how to promote economic growth and raise incomes.
4. How are you going to pay for this?
The Hope Scholarship Tax Credit costs $25.1 billion over six years; the $10,000
deduction now costs $17.8 billion -- for a total of $42.9 billion, an increase of $7.9
billion over the proposal in the President's balanced budget plan. To offset those new
costs, the Administration is proposing new budget savings: Auctioning radio spectrum
($2.1b); increasing international departure tax ($2.3b); reduction of sales source rule
benefits ($3.5b). The cost of the deduction is reduced largely because more people
make use of the credit, and also by lowering the income limits to conform to the
income limits on the Administration's expanded IRA proposal (i.e. from $120,000 to
$100,000).
1
5. Doesn't this trigger off in 2001?
The President is committed to a permanent proposal to offer the America's Hope
Scholarship tax cut. This new proposal is completely paid for with new offsets. Under
OMB scoring, this new tax credit would be extended indefinitely. If Congressional
Budget Office economic assumptions come into effect and there are less revenues to
offset the tax cut, the Administration will put forward additional spending cuts for
FY2001 and FY2002 to ensure both that the tax credit continues and that the budget
stays in balance.
6. Can you take both the credit and the deduction at the same time?
The credit is $1,500 per student. The deduction is $10,000 per family. A family
could use the deduction for one or more children and the credit for others. No single
individual or family member, however, could use both the credit and the deduction for
the same student.
7. Isn't it strange that under your proposal a family in the 28% bracket with $10,000 in
tuition would get over $2000 in tax cuts even without attaining a B average?
The vast majority of families will choose the Hope Scholarship tax credit and find it
far to their financial advantage. (The credit is estimated to cost $25.1 billion; the
deduction $17.8 billion.) For example, for a family that makes $45,000 and has
tuition of $2000, the credit would be worth $1200 a year more than the deduction.
All families in the 28% bracket with tuition under $5300 will find the credit to their
advantage. And families with two or more children who are near the maximum will
often find it to their advantage -- because they can take the credit for one child and
the deduction for another.
8. Why did you not apply the B average to the deduction?
The President's $10,000 deduction was designed to make a major statement for all
education: investment in human capital should be given a tax deduction just as
investment in physical capital is. The $10,000 deduction is for families and it is for
any type of education that contributes to one's career advancement -- college,
graduate school, career training. The Hope Credit is a special tax credit designed to
specifically encourage all Americans to see that two years of college must be a
national norm, and it is designed to say to every state: if you offer tuition within $300
of the national norm, you can now provide free community college tuition for all of
your residents.
2
9. Will this plan lead to grade inflation?
So far, in Georgia, there is little if any evidence of that. In fact, many students have
dropped off after the first years.
10. This plan is supposed to be based on the Georgia plan, yet unlike Georgia, it does
not require a B average in High School.
Isn't this a different model?
The core of Georgia's plan is to expand access to college
and challenge
students to make the most of it. Like our plan, it requires students to maintain a B
average in college in order to remain eligible.
Because they have made the bold decision to provide free tuition for four years of
public college, they ask for a B average before making a student eligible for these
extensive benefits.
The President's plan, gives everyone a chance for a start, and then like Georgia,
requires a B average to maintain benefits. With this new federal partnership, the
President's plan will make it more possible for more and more states to follow
Georgia's move and provide four years of college tuition for those who perform at a B
average.
3
QUESTIONS AND ANSWERS
AMERICA'S HOPE SCHOLARSHIPS
For Internal Use
1. Why are you making a new proposal now? What was wrong with your original one?
The President has worked throughout his career and his administration to expand
access to college. He put in place two new programs to make it easier to go to
college (National Service and Direct Lending), increased Pell Grants, and proposed a
$10,000 deduction, honors scholarships for the top 5% of every high school class, and
expanding work study to 1 million students over the next five years. Today, he is
taking another important step that will help make two years of college as universal as
four years of high school. The President is so determined to expand college
opportunity that he is putting forward $8 billion in new budget savings to pay for this
new proposal.
2. Aren't you just trying to pre-empt Senator Dole?
We have no idea what Senator Dole plans to propose, if anything. The President is
only interested in setting forth his vision for the country -- and giving more
Americans the chance to go to college is central to that vision. He also believes that
any tax cut must be targeted and paid for. We can't go back to the days of something
for nothing.
3. Isn't this just an election-year gimmick?
The President is giving a series of commencement addresses on the challenges we face
as we move into the next century: restoring the social fabric; keeping America the
strongest force for freedom and democracy; promoting economic growth; strengthening
the family. He came to Princeton today to give a serious, thoughtful speech that laid
out his vision of how to promote economic growth and raise incomes.
4. How are you going to pay for this?
The Hope Scholarship Tax Credit costs $25.1 billion over six years; the $10,000
deduction now costs $17.8 billion -- for a total of $42.9 billion, an increase of $7.9
billion over the proposal in the President's balanced budget plan. To offset those new
costs, the Administration is proposing new budget savings: Auctioning radio spectrum
($2.1b); increasing international departure tax ($2.3b); reduction of sales source rule
benefits ($3.5b). The cost of the deduction is reduced largely because more people
make use of the credit, and also by lowering the income limits to conform to the
income limits on the Administration's expanded IRA proposal (i.e. from $120,000 to
$100,000).
1
5. Doesn't this trigger off in 2001?
The President is committed to a permanent proposal to offer the America's Hope
Scholarship tax cut. This new proposal is completely paid for with new offsets. Under
OMB scoring, this new tax credit would be extended indefinitely. If Congressional
Budget Office economic assumptions come into effect and there are less revenues to
offset the tax cut, the Administration will put forward additional spending cuts for
FY2001 and FY2002 to ensure both that the tax credit continues and that the budget
stays in balance.
6. Can you take both the credit and the deduction at the same time?
The credit is $1,500 per student. The deduction is $10,000 per family. A family
could use the deduction for one or more children and the credit for others. No single
individual or family member, however, could use both the credit and the deduction for
the same student.
7. Isn't it strange that under your proposal a family in the 28% bracket with $10,000 in
tuition would get over $2000 in tax cuts even without attaining a B average?
The vast majority of families will choose the Hope Scholarship tax credit and find it
far to their financial advantage. (The credit is estimated to cost $25.1 billion; the
deduction $17.8 billion.) For example, for a family that makes $45,000 and has
tuition of $2000, the credit would be worth $1200 a year more than the deduction.
All families in the 28% bracket with tuition under $5300 will find the credit to their
advantage. And families with two or more children who are near the maximum will
often find it to their advantage -- because they can take the credit for one child and
the deduction for another.
8. Why did you not apply the B average to the deduction?
The President's $10,000 deduction was designed to make a major statement for all
education: investment in human capital should be given a tax deduction just as
investment in physical capital is. The $10,000 deduction is for families and it is for
any type of education that contributes to one's career advancement -- college,
graduate school, career training. The Hope Credit is a special tax credit designed to
specifically encourage all Americans to see that two years of college must be a
national norm, and it is designed to say to every state: if you offer tuition within $300
of the national norm, you can now provide free community college tuition for all of
your residents.
2
9. Will this plan lead to grade inflation?
So far, in Georgia, there is little if any evidence of that. In fact, many students have
dropped off after the first years.
10. This plan is supposed to be based on the Georgia plan, yet unlike Georgia, it does
not require a B average in High School.
Isn't this a different model?
The core of Georgia's plan is to expand access to college
and challenge
students to make the most of it. Like our plan, it requires students to maintain a B
average in college in order to remain eligible.
Because they have made the bold decision to provide free tuition for four years of
public college, they ask for a B average before making a student eligible for these
extensive benefits.
The President's plan, gives everyone a chance for a start, and then like Georgia,
requires a B average to maintain benefits. With this new federal partnership, the
President's plan will make it more possible for more and more states to follow
Georgia's move and provide four years of college tuition for those who perform at a B
average.
3
QUESTIONS AND ANSWERS
AMERICA'S HOPE SCHOLARSHIPS
For Internal Use
1. Why are you making a new proposal now? What was wrong with your original one?
The President has worked throughout his career and his administration to expand
access to college. He put in place two new programs to make it easier to go to
college (National Service and Direct Lending), increased Pell Grants, and proposed a
$10,000 deduction, honors scholarships for the top 5% of every high school class, and
expanding work study to 1 million students over the next five years. Today, he is
taking another important step that will help make two years of college as universal as
four years of high school. The President is so determined to expand college
opportunity that he is putting forward $8 billion in new budget savings to pay for this
new proposal.
2. Aren't you just trying to pre-empt Senator Dole?
We have no idea what Senator Dole plans to propose, if anything. The President is
only interested in setting forth his vision for the country -- and giving more
Americans the chance to go to college is central to that vision. He also believes that
any tax cut must be targeted and paid for. We can't go back to the days of something
for nothing.
3. Isn't this just an election-year gimmick?
The President is giving a series of commencement addresses on the challenges we face
as we move into the next century: restoring the social fabric; keeping America the
strongest force for freedom and democracy; promoting economic growth; strengthening
the family. He came to Princeton today to give a serious, thoughtful speech that laid
out his vision of how to promote economic growth and raise incomes.
4. How are you going to pay for this?
The Hope Scholarship Tax Credit costs $25.1 billion over six years; the $10,000
deduction now costs $17.8 billion -- for a total of $42.9 billion, an increase of $7.9
billion over the proposal in the President's balanced budget plan. To offset those new
costs, the Administration is proposing new budget savings: Auctioning radio spectrum
($2.1b); increasing international departure tax ($2.3b); reduction of sales source rule
benefits ($3.5b). The cost of the deduction is reduced largely because more people
make use of the credit, and also by lowering the income limits to conform to the
income limits on the Administration's expanded IRA proposal (i.e. from $120,000 to
$100,000).
1
5. Doesn't this trigger off in 2001?
The President is committed to a permanent proposal to offer the America's Hope
Scholarship tax cut. This new proposal is completely paid for with new offsets. Under
OMB scoring, this new tax credit would be extended indefinitely. If Congressional
Budget Office economic assumptions come into effect and there are less revenues to
offset the tax cut, the Administration will put forward additional spending cuts for
FY2001 and FY2002 to ensure both that the tax credit continues and that the budget
stays in balance.
6. Can you take both the credit and the deduction at the same time?
The credit is $1,500 per student. The deduction is $10,000 per family. A family
could use the deduction for one or more children and the credit for others. No single
individual or family member, however, could use both the credit and the deduction for
the same student.
7. Isn't it strange that under your proposal a family in the 28% bracket with $10,000 in
tuition would get over $2000 in tax cuts even without attaining a B average?
The vast majority of families will choose the Hope Scholarship tax credit and find it
far to their financial advantage. (The credit is estimated to cost $25.1 billion; the
deduction $17.8 billion.) For example, for a family that makes $45,000 and has
tuition of $2000, the credit would be worth $1200 a year more than the deduction.
All families in the 28% bracket with tuition under $5300 will find the credit to their
advantage. And families with two or more children who are near the maximum will
often find it to their advantage -- because they can take the credit for one child and
the deduction for another.
8. Why did you not apply the B average to the deduction?
The President's $10,000 deduction was designed to make a major statement for all
education: investment in human capital should be given a tax deduction just as
investment in physical capital is. The $10,000 deduction is for families and it is for
any type of education that contributes to one's career advancement -- college,
graduate school, career training. The Hope Credit is a special tax credit designed to
specifically encourage all Americans to see that two years of college must be a
national norm, and it is designed to say to every state: if you offer tuition within $300
of the national norm, you can now provide free community college tuition for all of
your residents.
2
9. Will this plan lead to grade inflation?
So far, in Georgia, there is little if any evidence of that. In fact, many students have
dropped off after the first years.
10. This plan is supposed to be based on the Georgia plan, yet unlike Georgia, it does
not require a B average in High School.
Isn't this a different model?
The core of Georgia's plan is to expand access to college
and challenge
students to make the most of it. Like our plan, it requires students to maintain a B
average in college in order to remain eligible.
Because they have made the bold decision to provide free tuition for four years of
public college, they ask for a B average before making a student eligible for these
extensive benefits.
The President's plan, gives everyone a chance for a start, and then like Georgia,
requires a B average to maintain benefits. With this new federal partnership, the
President's plan will make it more possible for more and more states to follow
Georgia's move and provide four years of college tuition for those who perform at a B
average.
3