21st Century Scholarship faces financial trouble

Booming enrollments are causing severe financial problems for the Twenty-first Century Scholars Program.

The program, which offers full-ride university scholarships to students with financial need will require about an extra $30 million in the next state funding cycle in addition to its $28 million budget to keep up with enrollment, which nearly doubled in the past few years. 

Thus far, the program’s middle school enrollment has increased by more than 16,000 since 2008  after state lawmakers allowed sixth graders to apply for the first time along with seventh and eighth graders during the 2008-09 school year.

In order to cover the deficiencies, the 21st Century Scholars program has been forced to dip into the Frank O’Bannon Grant, one of Indiana’s scholarship programs for children in need of post-secondary financial aid.  

Established in 1990 by then Gov. Evan Bayh, 21st Century Scholars is a way to encourage students to maintain at least a 2.0 grade-point average and pledge to be good citizens in exchange for four years of free college tuition at an Indiana public university.

Eligible students are also able to attend a private school in Indiana with a significant portion of the tuition paid by the state.

Since 1995, 104,138 students have enrolled in the scholars program according to a report released by the Indiana Commission for Higher Education.

Junior Chontay Combs entered the program as an eighth grader while in foster care.

“Being able to come to a major university my freshman year when I didn’t have parents was extremely helpful, and it reduced the stress so much,” Combs said. “I didn’t have to worry about loans or a job, and I could focus on my academics and being an impactful student here at IU.”

As of now, a student with a family of four that earns less than $35, 798 a year is permitted to apply for the scholarship program.

If the parent earns a salary increase or gets a better job, the program still ensures it will pay the tuition.

However, all of that may be subject to change. A study conducted by the CHE  and the State Student Assistance Commission of Indiana  found one out of five scholars program students that do not show financial need once they enroll in college. 

This is because students are able to enroll as young as 10 or 11-years old, said Jason Bearce, Indiana’s Associate Commissioner for Higher Education.

“These students are enrolling at such an early age that a family’s financial circumstances can change dramatically by the time a student reaches their senior year in high school,” Bearce said. “We want to be sure we’re providing that money to the families who need it the most.” 

With a severe lack of funds, the CHE is looking into an amendment to the current legislation that will require an assessment of the student’s financial need over time.

This could lead to an adjustment of a student’s scholarship if needed, Bearce said.  
The CHE is also recommending the minimum GPA requirement be raised from a 2.0 to a 2.5, Bearce said. 

Combs said she supports changing the process to include a reassessment of financial needs. 

“I was an extremely needy person when I came into the program, and I believe that the program should check and make sure that the people who actually need it receive the scholarship,” she said.

While some are happy about the possible change, others might struggle to afford tuition, or families could pass up job opportunities to increase their income as a way to keep their eligibility. 

“We have to believe that Hoosiers as a whole want to improve their financial state,” Bearce said. “We can speculate over whether families would pass up opportunities, and though we don’t think that would be an issue, it is something we are aware of and will be considering.”

The Indiana General Assembly’s State Budget Committee will be meeting with members of the CHE and the assistance commission to discuss the funding of Indiana’s college scholarship programs today.

Bearce said a decision about an amendment to the legislation could be made as soon as January, but any change would not apply to students who are already in the program.