MSU Administration and Board of Trustees to move state appropriated funds into student financial aid

Contact: Terry Denbow, University Relations, (517) 355-2262, denbow@msu.edu

Oct 21, 2005

East Lansing, Mich. - Michigan State University President Lou Anna K. Simon and the university Board of Trustees have opted to move $1.6 million in state appropriation funds toward financial aid for resident undergraduate students.

MSU's 2005-06 budget was adopted based on a projected state appropriation of $282.1 million. The state Legislature ultimately appropriated $283.7 million.

Following consultation with a number of key constituencies, including the Associated Students of Michigan State University, the board and administration believe that applying these resources to student financial aid is appropriate and consistent with past university decisions.

"These funds will be used to provide additional financial support to our current students demonstrating significant financial need, including students whose families have been severely affected by current economic difficulties," said Simon. "Michigan State has always been about finding a way to make a college education and the resulting socio-economic benefit available to those who might not otherwise be able to afford it. Using these state funds is wholly in keeping with that tradition."

The funds will be allocated to financial aid in three categories:

  • Highest need students, to replace the parental loan portion for current students with the highest Pell grant allocations;
  • "Just-above-Pell" category, which expands student grants to juniors and seniors who are just above the Pell grant-eligible level (freshmen and sophomores in this category already received this grant this year); and
  • Significant loss of income situations, to provide additional funds to families who have experienced a significant loss of income since financial aid packages were calculated due to the economy.

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