News from the
Committee on Education and the Workforce
John Boehner, Chairman

FOR IMMEDIATE RELEASE
April 16, 2004

CONTACTS: Todd Shriber or 
Alexa Marrero 
Telephone: (202) 225-4527

California Colleges Would Receive Increased Student Aid Under GOP Plan to Restore Fairness to Higher Education Programs

         WASHINGTON, D.C. -- A legislative proposal being readied by Republicans on the U.S. House Committee on Education & the Workforce would result in significant increases in federal financial aid for a number of California colleges and universities, committee leaders John Boehner (R-OH) and Howard P. "Buck" McKeon (R-CA) said today.

         "The Republican plan to increase federal funding to California universities will make the dream of attending college a reality for many low and middle-income students," McKeon said. "Some schools that have experienced rapid enrollment growth are at a disadvantage because of an outdated formula that doesn't consistently benefit needy students. I will fight hard to ensure that an equitable system is put in place and that all California institutions receive their fair share of campus-based aid funding."         House Republicans recently announced plans to introduce legislation to bring fairness to an outdated federal formula used to distribute federal campus-based student aid among the nation's colleges and universities. Because of special provisions inserted into federal law over decades, the current campus-based aid distribution formula disproportionately benefits rich, elite or well-established colleges at the expense of many low and middle-income students attending newer, often lower-cost schools.

         The House GOP plan, expected to be formally introduced this spring, would help colleges in California that serve a greater percentage of needy students. Based on a committee staff analysis of U.S. Department of Education data, if the Republican plan were in effect today, these schools could see their campus-based aid funding for Supplemental Educational Opportunity Grants (SEOG), Federal work-study programs and Perkins Loans increased by an average of 3.4 percent, and some increases could be as high as 10 percent. The following estimates show how California students and schools would benefit if the first phase of the GOP plan to restore fairness to federal campus-based aid programs was in place today.

         Students and schools across California stand to benefit from the changes.

·         CALIFORNIA COLLEGES AND STUDENTS WIN: Under the GOP campus-based aid plan, California colleges and students would collectively receive about $6 million more in annual federal funding than they are likely to receive under the current federal campus-based aid formula. This funding would come through the three federal campus-based aid programs - the Supplemental Educational Opportunity Grant (SEOG), Federal work-study and Perkins Loan programs.

·         Republican plan helps USC: The University of Southern California would receive an increase of more than $1 million, or 9.4 percent, from $10.6 million to $11.6 million for the three programs, under the more equitable plan proposed by House Republicans.

·         Stanford students would benefit from GOP plan: Stanford University students participating in SEOG and work-study programs would receive an increase of $250,000 from $3.54 million to $3.79 million.

·         The California State University system stands to gain almost $500,000 for all three programs, up from $17.3 million to $17.8 million. Nearly every school in the system would realize gains for each program.

·         Nearly every school in the University of California system would receive increases in SEOG and work-study funds.

·         More than two dozen public community colleges throughout California would receive increased funding through the GOP plan.

·         Hundreds more California colleges and universities will benefit from the Republican plan to distribute federal financial aid funds more fairly. Among them:

·         UC-Berkeley would receive a 230 percent increase in federal funding for its Perkins Loan Program.

·         UC-Santa Barbara would receive a 90 percent increase in federal funding for its Perkins Loan Program.

·         Loyola Marymount University would receive almost $3.2 million in federal funding, up from $2.9 million, for all three programs.

·         Chapman University's funds would almost double, climbing by more than $830,000 to $1.8 million for all three programs.

·         Occidental College would receive almost $880,000 up from less than $820,000.

·         Saddleback College, one of the many community colleges the GOP plan would help, would gain more than $14,000, bringing funding from $234,100 to $248,800.

·         Fresno Pacific College would realize an 8.5 percent increase from $305,000 to $331,000.

         As the New York Times noted recently, "[t]he federal government typically gives the wealthiest private universities, which often serve the smallest percentage of low-income students, significantly more financial aid money than their struggling counterparts with much greater shares of poor students." ("Rich colleges receiving richest share of U.S. aid," Winter, NY Times, 09 Nov 03)

         The Republican plan would begin to change this, to provide fairness for schools that serve larger numbers of low and middle-income students.

         The National Association of Student Financial Aid Administrators (NASFAA), which represents the student financial aid interests of most U.S. colleges, is urging Congress to end the special subsidies. And in his 2005 budget request, President Bush called on Congress to provide fairness for low and middle-income students.

         For further information on House Republican efforts to expand college access for low and middle-income students, visit http://edworkforce.house.gov/issues/108th/education/highereducation/highereducation.htm