News, Views and Careers for All of Higher Education
July 5, 2006
Some deals are just too good to pass up.
The more than 800,000 students who currently attend one of the 28 community colleges in Florida have traditionally had a relative bargain. They’ve secured valuable degrees, earned transfer opportunities, and achieved financial success — all for relatively little money. Last year, the average cost for tuition and fees at the state’s community colleges was about $64 per credit hour.
But even a small sum can keep many well-qualified low-income students out of college. The community college tuition has also impeded the state’s efforts to woo some students away from crowded state universities, which have among the lowest tuition and fee rates in the country, according to some educators and legislators in Florida.
As part of the state’s Bright Futures Scholarship program, the pot has been sweetened. New legislation approved last month by Gov. Jeb Bush, which provides $61 million more this year for the Bright Futures program, students who achieve a 3.0 grade-point average in high school and get at least a 970 on the SAT will have 100 percent of their tuition and fees covered at the state’s community colleges. Until now, students who met that benchmark had to pay 25 percent of their tuition and fees at two-year institutions.
More than 130,000 students received one of three of Bright Futures Scholarships in 2004-5, which cost taxpayers $276 million. The three tiers of the program provide different levels of financial support to student, based on their grades, SAT scores and community service. Community college students have always been eligible for the three tiers of the program, but the new legislation has relaxes requirements for their receipt of full tuition assistance.
Legislators have now raised the budget to $337 million. It’s unknown at this point how much the enhancements for two-year students will ultimately cost.
“Anything that’s free will attract attention,” says Michael Comins, chief executive officer of the Florida Association of Community Colleges. “It’s just one more incentive for a student to choose community college.”
Education experts in the state say that community colleges will now have a bit of a leg up over public colleges and universities. Currently, under the Bright Futures program, students entering a public college or university with a 3.0 GPA must pay 25 percent of their tuition and fees. At the University of Florida, tuition and fees are $3,300 per year — not a huge amount — but an amount that does prove to be burdensome to some students and families.
“Students could save anywhere between $600 and $800 a year,” says State. Rep. Joe Pickens, a Republican who is chairman of the House of Representatives Education Appropriations Committee. “For those people that it makes a difference for, that’s a lot of money.”
Steve Orlando, a spokesman for the University of Florida, says that students who transfer from a Florida community college after two years are given a certain amount of priority over other students in the admissions process at his institution, so students who take advantage of the new plan could also have an advantage in transferring.
“Lots of people in the state are concerned about securing access to higher education for all students,” says Orlando. He notes that about 20,000 students applied this year for only 6,700 open spots at the institution.
The new plan makes good economic sense for the state, supporters of the change say. According to a February report by Florida TaxWatch, a nonpartisan research firm, the 38,968 students who graduated from community college in 2003 will increase state output by $13.6 billion over a 40-year career span, and generate wages for others in the amount of $5.5 billion. They will also create 102,768 jobs, which reflects 2.6 jobs for Florida’s economy for each community college graduate.
The report also indicates that for an individual, an associate of science degree from a community college translated to a lifetime personal income increase of $480,000, compared to those whose formal education ended at high school graduation. A community college associate of arts degree translated to a lifetime personal income increase of $220,000 when compared to those whose formal education ended at high school graduation.
Some community college officials at institutions throughout the state have begun sending mail to students who would qualify for the expanded tuition waiver. Florida’s Department of Education is expected to begin airing radio and TV spots to promote the program.
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Programs such as this are to be applauded, however Florida and other states are giving away funds. The Hope and Lifetime Learning Credits were established by The Federal Government yet according to The IRS less than 20% of families eligible to claim the credit fail to do so. The Hope Tax Credit offers a credit up to $1,500 dollars for the first two years. The Lifetime Learning Credit offers a credit up to $2,000 per year. These are not deductions but credits, which is actual dollars.
If programs were developed to better educate the public regarding using eligible strategies including the Educational Tax Credits, millions of dollars could be saved and used to fund other Educational initiatives.
Jack Girvan, Founder at Educational Funding Consultants, at 10:05 am EDT on July 5, 2006
While eliminating financial barriers to higher education of course should be applauded, what’s the sense in further subsidizing those who easily can afford it? I don’t see any discussion of an income limit to this program. Shouldn’t state aid payments be focused on those who are needy?
Publius, at 11:15 am EDT on July 5, 2006
In response to the question if Florida programs should focus only on those “who need it.” The fact is the rising costs of college are becoming an increasing problem in this country. We need to make college accessible to all people and not just the lower 10% or upper 10%. Remember we have a shrinking middle class that is deep in debt. Much of it is due to the student loans that many of us in the middle class have.
VGiord1227, at 12:45 pm EDT on July 5, 2006
So, Comrade VGiord, if people shouldn’t have to pay for college, should they have to pay for food or housing? And where, precisely, should the government come up with the money to pay for these things? Perhaps faculty should work for free?
Publius, H, at 1:40 pm EDT on July 5, 2006
Previous post should have read..."less than 20% of families that are eligible, claim the Hope and Lifetime Learning Credits, thereby not obtaining up to $9,000 that could be used for college costs.”
Jack Girvan, Founder at Educational Funding Consultants, at 11:55 am EDT on July 6, 2006
The upper income limits for the education credits are too low, especially for head of household. It starts to phase out at $43,000. If you are a single parent making that amount of money, you are generally eligible for federal grants (Pell and SEOG), therefore, you aren’t paying your child’s education costs and thus can’t take the credit. It seems to me that the federal grants and the education credits are benefiting the same people. Neither are helping the middle class.
Tara, at 7:55 pm EDT on July 10, 2006
Tara,
You are right the phaseouts are too low. They need to be adjusted and interest deduction needs to be reinstated. But an administration that cuts 13 billion dollars from education, raises interest rates on Stafford and Plus loans is not an administration that cares about education.
Despite the phaseouts a family that plans properly can obtain the credits regardless of their income.
Jack Girvan, Founder at Educational Funding Consultants, at 4:30 am EDT on July 11, 2006
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It can Still Get Better
The next step is to give the bottom of the high school class a chance too. There is no better investment a society can make.
William Sumner Scott, J.D.
Judicial Equality Foundation, Inc.
wss@jefound.org
William Sumner Scott, at 8:40 am EDT on July 5, 2006