Many IN college students to lose aid

FORT WAYNE, IND. (WANE) - In about a month, students will head back to college, but in Indiana, many students may face a financial aid shortfall. A 34% increase in state financial aid applications and a 6% increase in state aid funding: this mathematical failure is just the beginning of the problem.

"In the last few days, we were handed another challenge,” said Indiana Tech President Dr. Arthur Snyder.

That describes what it’s been like for both students and workers at financial aid offices across the state. The State Student Assistance Commission of Indiana is funded by the state budget, which was passed just a few weeks ago on June 30.

"Even though there's been an increase in the total budget for student aid in Indiana, there's been a large increase in the number of students seeking to use that funding,” said Dr. Snyder.

The increase isn't enough to cover the rising number of applicants, and those who do get aid, won't get as much.

For example, the maximum academic and need-based aid students will receive for public colleges comes in now at about $4,206. That’s down from about $6,096.

The cap for private or independent colleges had been nearly $10,992 a year. Now, that'll be more like $7,584.

Students across the state will be impacted by the shortfall, whether they're going to a public or private school. At Indiana Tech, the school is actually eating the difference.
Indiana Tech Junior Tiffany Aikin from Elkhart estimates she receives $5,000 in state funding for one academic year.

"I don’t get a lot of help from home because my mom is a single mom, so I would have had to get a third job,” Aikin said.

"I get about $3,000 in state funding, so I was worried. I live at home, I have to drive to school and I have a job and I barely make enough just to get by,” said Indiana Tech junior Derek Host from South Whitley.

The Indiana Tech announcement will help nearly 300 students save an average of $2,000 that they would have had to make up due to the SSACI cuts.

"[We’re able to do that] through institutional financial aid, so really what we do is dig deeper into our scholarship funds which are part of our endowment funds to make up for this difference,” Dr. Snyder said.

State officials agree that times are tight, but add there's still a 6.5% increase to the overall SSACI program, but again, that's hurt by both a hike in tuition costs and the rising number of applicants.