RALEIGH — A new plan by legislators brings the state no closer to solving a shortage of financial aid money.
But it would consolidate existing sources of aid — some of which are running out — to simplify the system.
The legislative committee recommends consolidating three need-based grants into the N.C. Access and Success Grant and eight loan programs into the N.C. Forgivable Education Loan for Service program, said Steve Brooks, executive director of the N.C. State Education Assistance Authority.
The transition will take place in 2012 if the General Assembly approves recommendations in its upcoming session.
Committee members acknowledged the need for alternative sources of funding to replace the state’s depleting escheats fund, which provided about 67 percent of the three funds to be consolidated for the 2009-10 academic year.
“That has been the 800-pound gorilla that’s been sitting in this room since the day this committee was constituted,” said Ray Rapp, D-Haywood, the committee’s vice chairman.
The consolidation would free up some money, but the savings would not be nearly enough to offset the expected deficit if the state’s escheats fund becomes unusable in 2013 as predicted, he said.
In 2009-2010, the escheats fund provided $155 million in state grant funding.
“Everything should be on the table when you’re looking at these kinds of numbers,” Rapp said.