 "Photo: Chad Stoermer")
For students, the cost of attending Texas A&M in the fall will increase by 5.3 percent, but officials at the Department of Student Financial Aid said there will be an increase in the amount of money available.
Delisa Falks, acting director for the student financial aid office, said the financial aid department dispenses $420 million in the form of scholarships, grants, and loans every year. Federal and student loans make up the highest percentage of aid, with two out of every five students using loans.
"With the tuition increase we have been getting mandated funds to help students financially," Falks said. "Over the past couple of years we have also seen an increase in the number of scholarships and grants."
Seventy-nine percent of students enrolled in the University receive some kind of financial aid assistance, two out of five students have scholarships, and one out of four receive grant money, Falks said.
Falks said she has seen an increase in stipends for the Federal Pell Grant and the TEXAS Grant, both of which are need-based grants with eligibility determined by the Free Application for Federal Student Aid (FAFSA).
Debra Robertson, associate director at the Department of Student Financial Aid, said that there has been an increase for the TEXAS grant program.
All students who wish to receive any type of financial aid through the University must fill out the FAFSA form. Falks said this helps the financial aid office determine a student's eligibility for a loan, scholarship or grant.
Robertson said she encourages students to fill out the FAFSA because they may not realize they could qualify for financial aid.
"All the questions on the FAFSA - income, personal assets, what state you live in and more all play into a formula in order to receive financial aid," Robertson said.
In 2003, tuition deregulation went into effect after Gov. Rick Perry signed House Bill 3015, which allowed the governing boards at Texas universities to set tuition rates. Included in the bill was a mandate for universities to set aside a designated amount of money from resident undergraduate and graduate student tuition.
The money set aside from tuition is used to provide financial assistance to undergraduate and graduate students for in-state students.
Associate Vice President of Finance Bruce Edwards said A&M will withhold 20 percent of $106 per semester credit hour for financial aid purposes. The state mandates a tuition of $50 per semester credit hour, with the University deregulated tuition adding the $106. Edwards said the department is not required to set aside a percentage from the state mandated tuition, just the deregulated tuition.
Edwards said for every dollar increase in the cost of tuition, they have been setting aside money for financial aid purposes. With an increase in the cost of credit hours for fall 2007, the University has increased the amount they can withhold 20 percent from for student financial aid, from $95.70 to $106.
"There is an increase in money for financial aid primarily from the standpoint of more set-aside money," Edwards said.
Falks said that this money has helped the financial aid department fund students and maintain affordability.
Edwards said that after this past Texas Legislative session, A&M was appropriated $50 million, an 11.6 percent increase compared to the last session, to help mitigate the cost of operation, maintaining facilities and adding funds for new projects, faculty investment and other general funds. This money is for the 2008 and 2009 academic years.
The $50 million, however, is appropriated general funds and doesn't have to be used for financial aid.
Edwards said in the base budget for 2007 there was an increase in money spent on student retention and recruitment, up to $4.6 million, and that a big chunk of that money goes toward the Regents' Scholars program, which is given to 600 incoming freshmen students each fall.
"With the designated tuition funds, in years past, we were able to create new Texas Aggie grants and scholarships," Falks said. "We don't mingle this money with state or federal grants and scholarships."
But while most of the financial aid is need based, many students not eligible for need-based loans, scholarships or grants may find the cost of higher education burdensome.
Falks said the tuition increase should not hinder students' ability to attend Texas A&M and that the set-aside money should help maintain affordability.
"It is hard for me to say if the tuition increase is putting a burden on that student [middle class] or not," Falks said. "Students who may be eligible for money, but who do not fill out the FAFSA, could qualify for financial aid."
"The increase in tuition may affect some peoples' decision to attend the University, but if they decide they want to attend A&M, there are always resources available for them," Robertson said.
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