A new way to consolidate financial aid funds will simplify the process of allotting aid to students, but will do nothing to compensate for the shortage of aid money available.
The “800-pound gorilla” in the room, as state legislator Ray Rapp, D-Haywood, calls it, is that the main source of financial aid funding is predicted to become unusable in 2013.
The consolidation plan, proposed by a committee of state legislators, proposes condensing aid into two main programs. If the General Assembly approves the plan, three need-based aid grants offered to students will merge into the N.C. Access and Success Grant. Eight loan programs will merge into the N.C. Forgivable Education Loan for Service Program.
Consolidation of these funds could free up money in 2012 if the plan is enacted, a logical choice for easier management.
But the savings from this move will not come close to fixing the current deficit in financial aid funds — an intimidating problem in urgent need of a solution.
State legislators have dug a hole for themselves with the mismanagement of the escheats fund, which is financed by unclaimed property that is turned over to the Department of State Treasurer.
The escheats fund is a major source for the state’s financial aid, and it provides the means for many scholarships, grants, and loans awarded annually to students.
The fund’s struggles come as devastating news to the students who rely on financial aid to pay for school.
It is encouraging that legislators are brainstorming ways to improve the state’s financial aid system, but the state legislators’ focus still needs to shift.
