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UNC-system schools opt out of federal financial aid initiative

Several UNC-system schools have decided not to participate in a federal financial aid initiative because administrators say it doesn’t offer many benefits to participating schools.

Schools can apply until Dec. 12 to participate in the U.S. Department of Education’s Experimental Sites Initiative. The experimental project would allow schools to test potential student aid requirements to help the department improve its financial aid program.

The department has conducted similar experimental initiatives in the past, and some of the experiments have been adopted into law.

Sara Gast, spokeswoman for the Department of Education, said there are eight different experiments. Schools apply to participate in one experiment.

The experiments include limiting unsubsidized loan amounts for students and offering a single disbursement of a one-time loan for study abroad students.

“The overall objective of the program is to learn ways we can improve services to students and free institutions from administrative burdens,” she said. “All institutions are invited to apply.”

But Phillip Asbury, deputy director of scholarships and student aid at UNC-CH, said the University has no plans to apply to be an experimental site.

“It’s more of an administrative benefit than a student benefit,” he said.

Asbury said the experimental sites initiative is a way for the Department of Education to work with a small group of schools to find out which of its regulations work and which do not.

But Asbury said most schools don’t apply for the experiment.

“The vast majority of schools are not experimental sites,” he said.

UNC-CH must focus on complying with its standard practices, he said.

Other UNC-system schools are also hesitant to apply.

“Having looked at the conditions, I’m not sure we’d need the flexibility that would come along with being an experimental site,” said Julie Rice Mallette, director of financial aid at N.C. State University.

She said NCSU’s financial aid program is sufficient, and the university does not have a loan default issue among its students.

Esther Manogin, director of student financial aid at Appalachian State University, said ASU is not going to apply either.

“We’ve just not looked into it or investigated it, so we’re not going to apply,” she said.

East Carolina University is also not planning to be an experimental site, said Julie Poorman, the university’s director of financial aid.

“Really and truly, we have done all we can do to keep up with the regulations that they’ve changed, so we’d rather just do what’s asked.”

Contact the State & National Editor at state@dailytarheel.com.

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