Bill could grant in-state status

Competition for scholarships at UNC-system schools could be eased if a budget bill provision passes through the N.C. House.

Accompanying the $17 billion budget that was approved by the State Senate earlier this month, the legislation states “any person who receives a full scholarship to a constituent institution and who attends the institution as an undergraduate student shall be considered and treated … as a resident of North Carolina.”

This means that both private- and state-funded scholarship organizations could dole out more scholarships to both resident and non-resident students.

Senate Majority Leader Tony Rand, D-Cumberland, a proponent of the proposal, said the possible change would greatly benefit groups like the Morehead Foundation at UNC-Chapel Hill and the Park Scholarships program at N.C. State University, as well as university booster clubs that fund athletic scholarships.

It is unclear how many new scholarships would be created, Rand said, but the impact would be significant.

Charles Lovelace, executive director of the Morehead Foundation, said the money saved by the proposal could create about a dozen additional scholarships.

These scholarships, Lovelace said, would not necessarily be reserved for out-of-state students, countering the critique that the legislation favors only non-resident students.

But some stand by the interpretation that the bill’s vague language could allow schools to bypass the 18 percent non-resident student cap by awarding more full scholarships to out-of-state students.

There is also a possibility that students who receive multiple scholarships, that combined equal a full scholarship, would be considered resident students, said Julie Mallette, director of scholarships and student aid at N.C. State.

“I think the intent was only to allow this (provision) to go to out-of-state students on full scholarship,” Mallette said. “But the language is not specific enough to restrict it to this. It probably is bigger than what the intent was when the legislation was proposed.”

If it were implemented in the strictest fashion at N.C. State, only the 70 Park Scholars and 133 student athletes on full scholarships would be affected, Mallet said.

“In my assessment, it will save money for the Wolfpack Club, and for the Park Foundation” she said, noting the possibility of lost revenues incurred by the universities.

This could create financial and logistical problems for administrators, Mallette said. “But certainly if it meant the University wouldn’t lose revenue in the long run then we certainly would be willing to do the extra work.”

The benefits of a more talented student body and more student aid outweigh any potential costs, Lovelace said.

“The money would go to more students coming to Chapel Hill as Morehead Scholars as opposed to the Morehead Foundation receiving any indirect benefit,” he said.

“We see that as a good thing for the University and for the individual recipients.”

Contact the State & National Editor at stntdesk@unc.edu.