The N.C. Legislative Tuition Grant program allots $1,800 to every state resident attending one of the state's 36 private colleges, and the State Contractual Scholarship Fund gives colleges $1,100 for every full-time state resident enrolled at these schools.
Both programs, which have been in place for more than 30 years, provide $78 million in financial aid to all students at private colleges, regardless of need.
N.C. Rep. Verla Insko, D-Orange, chairwoman of the House Education Subcommittee on Universities, said the legislature is examining both programs to determine if there is a need for revision.
Insko said any funds reclaimed from scaling back the programs would probably be used to help alleviate North Carolina's budget shortfall, which is expected to be more than $1 billion for the next fiscal year.
Insko said one option is to scale back both programs and award financial aid on the basis of need. "If we allocated funds to these institutions based on the number of students in need, more money would go to schools with lower-income students," she said.
Under the current program, a portion of state-provided funds goes toward campus improvement. Legislators are trying to determine if military personnel who are enrolled in off-campus distance-learning curriculums and do not actually use campus facilities should be included in the grant programs.
Andrew Payne, UNC-system Association of Student Governments president, said he applauds the legislature for looking at the programs as a source of potential funds. "If students are going to be asked to fund enrollment growth, scaling back these programs would be an excellent way for the legislature to match what students contribute," he said.
Payne said reducing the programs would help equalize the financial burden between public and private institution students. He said the legislature's priority should be to improve the state's public universities.
"If an individual decides to go to a private institution, that's OK," he said. "But our No. 1 priority should be to fund our public institutions."