BOT Expected to Continue 'Hold Harmless' Grants

Shirley Ort, UNC's director of scholarships and student aid, said she expects the BOT to continue "hold harmless" grants, which allocate 35 percent of all funds generated by a tuition increase to the Office of Scholarships and Student Aid.

Ort said the policy, which the BOT has instituted for all campus-initiated increases since 1996, provides enough funding for students who already qualify for federal aid, regardless of the size of the tuition increase.

"The money is sufficient enough to offset the needs of all students, whether they are in-state or out-of-state," Ort said.

The BOT is slated to vote on a proposal for a tuition increase at its Jan. 24 meeting following a recommendation from the Task Force on Tuition. The task force was formed last month to examine the issue and will hold its second meeting today.

Provost Robert Shelton, who is the co-chairman of the task force with Student Body President Justin Young, said he has seen strong support to protect the "hold harmless" grants for any tuition increase proposal.

"Everyone I've talked to has said it's extraordinarily important that we keep that policy," Shelton said. "I can't imagine there would be any dissent on that issue."

Young said he thinks the 35 percent figure provides adequate financial support for students who already qualify for aid.

"The Office of Scholarships and Financial Aid could always use more funding, but they do an excellent job with that amount," Young said. "It ensures that all students already receiving aid are held harmless against future increases."

The policy does not include tuition increases across the UNC system, like last semester's increase passed in August by the N.C. General Assembly.

Law Professor Charles Daye, who is the chairman of the advisory committee on scholarships, awards and student aid, said an increase in licensing revenues from a projected $1.4 million to $2.2 million helped the financial aid office cover a greater percentage of student need than in past years. "With the systemwide increase, there was no money set aside," Daye said. "It was that extra money that was held over from the year our basketball team made the Final Four that enabled us to cover the extra cost."

But Daye said that because additional funds for student aid are not typically carried over from each year, licensing revenues can not be relied on to offset future tuition increases that are not campus-initiated. "They can be used as a windfall, but can't be counted on from year to year," Daye said.

Ort praised the BOT for its efforts to allocate money from each campus-based tuition increase toward financial aid. She said Princeton University is the only other institution that has a similar policy.

"I have seen overwhelming support to continue this," she said. "The commitment our board has given to filling financial need is so uncommon in higher education."

The University Editor can be reached at udesk@unc.edu.