1. 03/11/2021
Fiscal Research Division 1
Overview of Financial Aid
Programs in UNC Budget
Stephen Bailey, Fiscal Analyst
March 11th, 2021
Agenda
2
1. Public Higher Education Scholarships
2. Financial Aid Programs for Both Public and Private
Higher Education Institutions
3. Private Higher Education Scholarship
4. K-12 Scholarships
March 11, 2021
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2. 03/11/2021
Fiscal Research Division 2
Public Higher Education Scholarships
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0
20
40
60
80
100
120
140
UNC Need-Based
Grant
Education Lottery
Scholarship*
Cheatham-White
Scholarship
Community College
Grant**
General Fund Escheat Fund Education Lottery Fund
$30.5M
*Education Lottery Scholarship available to both Community College System and UNC System students
$125.9M
$1.8M
Four of the scholarships funded by the General Assembly through the education
budget are available only to those who attend public higher education institutions.
General Fund Requirements (Authorized),FY 2020-21
millions
($)
March 11, 2021
$16.5M
**Community College Grant is funded in the Community College budget
Financial Aid Programs for Public and Private
Higher Education Institutions in UNC Budget
4
Several financial aid programs supported by the General Assembly are available to
students who attend both public and private higher education institutions.
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
Principal
Fellows*
Principal
Preparation*
NC Tap
(National Guard)
Forgivable Ed.
Loans for
Service
Teaching
Fellows*
Patriot Star
Scholarship**
$4.6M
$16.6M
$6.0M
$1.0M
Net General Fund Appropriation (Authorized),FY 2020-21
**Patriot Star Family Scholarship received a $1.0M nonrecurring General Fund appropriation in FY 2020-21
$3.3M
$2.1M
Programs were
combined in 2019
millions
March 11, 2021
*Only available at select institutions
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Fiscal Research Division 3
Scholarship for Private Colleges and Universities
in UNC Budget
5
58.7
51.1
45.9
40.3
4.4
4.0
86.4 86.4 86.4 87.4 88.4 88.4 88.9 88.9 88.9
0
20
40
60
80
100
120
FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
millions
($)
Legislative Tuition Grant State Contractual Scholarship Fund
Education Lottery Scholarship NC Need-Based Scholarship
History of State Funding for Aid to Attend Private Colleges and Universities, FY 2010-11 to FY 2020-21
The NC Need-Based Scholarship provides awards for NC residents attending
private institutions with award amounts depending on financial need.
March 11, 2021
Scholarships for Private K-12 Institutions in
UNC Budget
6
$0
$10
$20
$30
$40
$50
$60
$70
$80
Opportunity Scholarship
Program
Disabilities Grant Program Education Savings Accounts
$74.8M
Net General Fund Appropriation (Authorized),FY 2020-21
The General Assembly provides funding for three K-12 scholarships to assist
families with the cost of attending private institutions.
millions
$13.0M
$3.0M
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Fiscal Research Division 4
Opportunity Scholarship Income Eligibility
Requirements, 2021-2022
Number in
Household
Eligible for $4,200 or 100%
Tuition – Whatever is Less
(100% RPL)
Eligible for $4,200 or 90%
Tuition – Whatever is Less
(150% RPL)
2 $32,227 $48,341
3 $40,626 $60,939
4 $49,025 $73,538
5 $57,424 $86,136
Reduced-price lunch program income eligibility tied to U.S. Federal Poverty level
Award amount varies depending on if household earns 100% or 150%
of the reduced-price lunch (RPL) program’s income qualifications.
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$0
$20
$40
$60
$80
$100
$120
$140
$160
FY 2017-
18
FY 2018-
19
FY 2019-
20
FY 2020-
21
FY 2021-
22
FY 2022-
23
FY 2023-
24
FY 2024-
25
FY 2025-
26
FY 2026-
27
FY 2027-
28
Opportunity Scholarship Program Statutory
Funding Increases
Current
Fiscal
Year
First
Statutory
Increase
End of
Statutory
Increases
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Per G.S. 115C-562.8 - the Opportunity Scholarship Program receives a
$10M annual statutory increase each year until FY 2027-28.
March 11, 2021
millions
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Fiscal Research Division 5
Opportunity Scholarships Are Forward Funded
Appropriated to
Reserve
Available for
Scholarships
FY 2018-19 54,840,000 44,840,000
FY 2019-20 64,840,000 54,840,000
FY 2020-21 74,840,000 64,840,000
Funds appropriated to the Opportunity Scholarship Program are placed
in a reserve and made available for awards the subsequent fiscal year.
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Recent Changes to Opportunity Scholarship
Program
In September 2020, the General Assembly made two modifications to the
Program that expanded eligibility (H1105 / S.L. 2020-97).
Modification Description Effective
Date
Lifts K/1 Cap Removes the limit on the number of
Kindergarten or 1st Grade students that
may receive the award
Fall 2020
Broadens Income
Eligibility Level
Raises the income level that a household
can earn and still qualify for the needs-
based award - from 133% to 150% of the
reduced-price lunch program
Spring 2021
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Fiscal Research Division 6
Disability Grant and ESA Program Overviews
Disability Grants Education Savings Accounts
Established FY 2012-13 FY 2017-18
2020-21
Appropriation
$13.0 million $3.0 million
Key Eligibility
Requirement
Public School IEP Public School IEP
Needs-Based No No
AwardValue $8,000 per year $9,000 per year
Distribution
Method
Funds sent directly to schools or
parents for reimbursement
Electronic debit account
Uses
Tuition, fees, expenses related to
educating a child with disability
Tuition, fees, expenses related to
educating a child with disability
There are similarities between the two scholarships in terms of
the eligible population and allowable award uses.
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Notable Disability Grant and ESA Legislation
During the FY 2019-21 Biennium
Bill Number Description
H.B. 966 Would have merged Disability Grants and ESAs
into one program called “Personal Education
Savings Accounts” – similar in nature to the
current ESA program structure.
H.B. 1105 /
SL 2020-97
Appropriated CRF funds to Disability Grants
($2.85M) and ESAs ($3.65M) to reduce the
waitlist for the fall 2020 academic year. This
was a one-time increase for the fall term only.
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Fiscal Research Division 7
Financial Aid Takeaways
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Nearly all scholarship and other financial aid programs are
funded through the UNC budget
The State Education Assistance Authority (SEAA) administers
most State financial aid programs
The State provides financial assistance in different forms to
help students attend public higher education institutions,
private higher education institutions, and private K-12 entities
March 11, 2021
Questions?
Eric Moore (Public Schools) - eric.moore@ncleg.gov
Amanda Fratrik (Public Schools) - amanda.fratrik@ncleg.gov
Christen Holly (NCCCS) - christen.holly@ncleg.gov
Stephen Bailey (UNC) – stephen.bailey@ncleg.gov
Room 619 LOB
(919) 733-4910
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Fiscal Research Division EducationTeam
March 11, 2021
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