More Students to Receive MAP Grants

SPRINGFIELD –The Fiscal Year (FY) 2004 state budget passed by the General Assembly and signed by Governor Blagojevich last week provides $6 million more than was appropriated last year for the need-based Monetary Award Program (MAP) administered by the Illinois Student Assistance Commission (ISAC).

“In spite of the severity of the State's fiscal crisis, not only did the Governor request that the State maintain the same level of MAP funding as last year, but he also preserved a portion of the money added by the General Assembly to help restore fifth-year MAP eligibility," explained Larry Matejka, ISAC's Executive Director. The Commission administers financial aid programs for Illinois students.

Last year, approximately 130,000 Illinois students received MAP grants totaling $333 million, to help pay college tuition and fees. Last year’s funding was down from $375 million in FY2002, representing the most substantial cut to the financial aid program in its forty-five year history. Because of the decreased funding for the program, nearly 11,000 fewer students were awarded MAP grants in FY2003 as in FY2002, and no student in his or her fifth year of eligibility for MAP received a grant last year.

In his budget address for FY2004, Governor Blagojevich asked the General Assembly to refrain from cutting funds for MAP grants, even as the State faced a $5 billion budget shortfall. In addition to providing level funding, the Governor approved half of the $12 million added to the budget by the General Assembly to allow MAP grants to be given to students entering their fifth year of MAP eligibility. Fifth-year MAP eligibilitywas eliminated for the first time in the program's history last year. An estimated 5,000 fifth-year students are expected to benefit from this $6 million increment.

Aside from the $6 million increment, the Commission received level funding for MAP grants and faced difficult decisions regarding how to allocate that funding for the coming academic year. Demand for financial aid is up sharply this year, with the number of eligible students running almost ten percent ahead of last year. Further, the level of need demonstrated by those eligible applicants has increased significantly as well, as college cost increases continue to outpace both inflation and family income.

“In order to help as many students as we can, without diminishing each award amount to an insufficient level, the Commission took action at its June meeting to reduce every MAP grant by ten percent off the full award amount. The ten percent cut will allow for about 9,000 more students to receive awards over last year,” Matejka said. MAP grants were cut by five percent last year. The average MAP grant will be $100 less than in 2003, while the maximum award paid under the program will drop from $4,720 to $4,471.

Had the Commission not imposed this across-the-board award reduction, it would have only been able to help students who applied for the program through mid-July. Thousands of financially needy students, especially adult students and very low-income students, apply during late summer and early fall and consequently would have been cut off from receiving any MAP grants.

Over 144,000 financially needy Illinois students are expected to receive MAP grants this year. That number represents an increase of 14,000 students relative to last year, reflecting the 5,000 students targeted and helped by the $6 million earmarked for fifth-year students, and the 9,000 additional students the Commission will be able to help as a result of the ten percent award reduction.

“I can’t think of a better investment for the future of the State of Illinois than helping our students gain a college education,” Matejka added.

About ISAC
The Illinois Student Assistance Commission is the State’s centralized provider of financial assistance aimed at helping students and families access postsecondary education and/or training. Each year, the Commission awards an estimated $400 million in scholarship and grant aid to nearly 185,000 qualified students, and also provides an additional $740 million to borrowers through its student loan programs. The agency offers credit-based alternative loans, a 529 prepaid tuition program known as College Illinois!, and a broad array of outreach and informational services to ensure that families have access to the information they need to pay for a college education. More information is available by calling toll-free 800.899.ISAC (4722) or visiting the agency’s Web site at www.collegezone.com.