Offcials Worry About Financial Aid

According to a press release from the U.S. Department of Education, North Carolina would receive $1.1 billion under the Bush proposal -- a $51 million increase.

The press release also stated that the nationwide Pell Grant program will receive $549 million more, a 5.3 percent increase.

The press release predicted that N.C. students will receive a total of about $255 million in Pell Grant funding.

Roger Murphy, a spokesman for the Education Department, said education funding is increasing across the board, partly in response to increased demand. "Requests for direct student loans are going up," Murphy said, adding that he has not heard any complaints about Bush's proposed budget.

But Steve Brooks, executive director of the N.C. State Education Assistance Authority, said Bush's economic plan would hurt the neediest people in the state by not funding a need-based aid program.

The Leadership, Education and Athletics in Partnership program provides matching funds for every dollar states allot to need-based aid.

"I think the proposal to zero out the LEAP program will cost about $8 million to the neediest in state," Brooks said.

Shirley Ort, UNC's director of scholarships and student aid, said she is also concerned about the status of the LEAP program. "The LEAP program is set out as incentives to the states," Ort said. "Their funding would be a serious blow to most states if it was rescinded."

Ort said Bush's budget is otherwise normal. "Essentially it's a status-quo budget, so I am probably in the minority of folks who would be satisfied with it," she said. "If we can hold the line without cutbacks at the federal level and maintain the gains that we picked, we'll be in good shape."

Ort said the fact that the proposal would also increase the maximum Pell Grant allowance to $4,000 is hopeful. "The maximum Pell Grant went up by $250, and that was a significant increase."

Brooks said the rest of Bush's proposed education budget is a general increase. "The others are just flat funding little increases," he said.

Ort said the finalized budget might show more of an increase in funding as spending priorities are better identified.

"This is just the first budget of many to follow," she said. "This is just the first of many people showing their budget, so we'll have lots of points where people can change things before the 2003 fiscal year."

The State & National Editor can be reached at stntdesk@unc.edu.