With Ball State University looking at a $15.2 million budget cut during the economic downturn that forced almost everyone to cut back, one thing vital to students' college education has been increasing in the past few years.
Gift aid, scholarships and grants that students don't need to pay back, increased 4.57 percent for Ball State students this year to almost $87 million. It has increased every year since at least the 2006-2007 school year. Since then it has increased 22.35 percent.
However, the rate at which it has increased has slowed each year. With the deadline to file Free Application for Federal Student Aid approaching within a month, competition — between Ball State students and all Indiana students — for state funds will be stiff.
John McPherson, interim director of scholarships and financial aid, said the gift amount was growing steadily until the economy began to decline.
Higher education found itself in a dilemma. The recession has forced people out of work or into pay cuts, which increases demand for financial aid because those people want to go to school to make themselves more qualified. But the job loss and pay cuts force people to cut back on spending, decreasing the state tax revenues. That forces the state to cut funding from higher education and financial aid.
Gov. Mitch Daniels tried to protect schools from budget cuts, McPherson said, but after a while the cuts were unavoidable.
McPherson said the State Student Assistance Commission of Indiana, where much of the state financial aid comes from, reduced the maximum award for individual students in order to spread the wealth to everyone who needs it. Ball State students' maximum award was decreased by about 30 percent. The commission received a large influx of applications once the recession hit and has struggled to keep up.
About 75 percent of Ball State students receive aid, he said. But that includes students with loans and work study as well as those with gift aid.
State aid has increased 4.74 percent for Ball State students since the 2006-2007 school year; however, it decreased by 6.61 percent to $21,487,313 this year.
He said the good news is that the economy shows signs of recovery, but so many people are still out of work. Once the unemployed start finding jobs, the state can restore higher education funding.
"Right now everything hinges on the economy," McPherson said. "Financial aid is about getting money to the right people. When there's constraints all across the board it's hard to do your job."
McPherson said tuition increases have played at part in increasing the amount of aid. Many of the scholarships given by the university are tuition and fee remissions. Enrollment increases may have played a marginal role in the increase, but tuition and the economy have been the most significant factors.
McPherson said student loans also are a viable option to finance education. If competition for aid prevents students from getting enough aid, loans may be the only alternative.
Federal student aid for Ball State students has increased by 78.91 percent since the 2006-2007 school year. It went from just more than $13 million to almost $24.4 million.
The deadline for students to receive priority consideration for their FAFSA is March 10. Every year families lose financial aid money that they could have been awarded.
Freshman Simon Meska said FAFSA is the biggest reason he's at Ball State. He said his financial aid pays more than $16,000 of his about $20,000 of tuition each year.
"I definitely wouldn't be going here if it wasn't for that," he said.
He hasn't filed his FAFSA yet, but he said he's not concerned about the economy in regards to financial aid or about increased competition for aid.
Junior journalism major Jeremy Whited said financial aid is important to him as well. He received a scholarship through the FAFSA and said he isn't concerned with competition for money. Some people may not get as much aid, but he said he's not worried.
McPherson said students who want to maximize their opportunity for aid should file a FAFSA by March 10. They also should check various community organizations that offer scholarships and within their academic departments.
Ball State will offer four Financial Aid Help Tables this semester, the first from 10 a.m. to 2 p.m. in the L.A. Pittenger Student Center. Counselors from the Office of Scholarships and Financial Aid will answer any questions students may have about financial aid and the FAFSA.
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