/State to award forgivable loan programs for health-related degrees

State to award forgivable loan programs for health-related degrees

Nonprofit Mississippi News Members of the Post-Secondary Board were surprised to learn that the Legislature had funded all of Mississippi’s financial aid programs for this session, after years of budget woes. The Office of Student Financial Aid is now able to grant nine forgivable loans programs that mainly target nursing and other health-related occupations for the first time since 2015. The board briefly considered holding back $2.5 million of its funding from collections for a “rainy-day” — that is, when the Legislature is less generous. OSFA had requested $48million in general funds for this session. However, lawmakers ultimately approved $50 million. Barney Daly (a board member and president of North Metro at Trustmark National Bank) asked, “Why did we get more?” Jennifer Rogers, director of OSFA, replied that she does not know the real thoughts of legislators. Daly asked, chuckling again: “Have you ever gotten more than what we asked for?” Before this session, Mississippi lawmakers had for years underfunded its student financial aid programs. OSFA was required to request a deficit appropriation from the 2019-2021 sessions. This means that it had given more money to college financial aid than what lawmakers had authorized. OSFA must award financial aid to all undergraduate college students who apply and qualify for one of the three Mississippi grant programs. However, it can prorate awards if it doesn’t receive sufficient state funding. OSFA did not receive sufficient funds from the Legislature in order to be able to grant its forgivable loan program. OSFA’s loan programs can only be awarded on a first-come-first-served basis if every student who has applied for and been granted a grant by the state. Jim Turcotte is the executive director and chairman of the Post-Secondary Board at Mississippi College. OSFA will be awarding approximately 460 students this year, mostly to nursing degree-seekers. All students who applied by March 30th have until April 30th to submit supporting documents. These loan programs allow the state to forgive one year’s student loan and give one year of service in Mississippi in return. This surplus could impact the need for the Mississippi One Grant, which is the overhaul of state financial assistance programs that the Post-Secondary Board proposed last years. The board rewrote the state’s existing aid programs to address legislative underfunding. It also set the One Grant annual cost at $48 millions. The One Grant would be available to more students than its current programs, but Black and low-income students would see their college financial aid decrease by thousands of dollars. White students would receive money. Some members still questioned if the board should spend its extra funding or save it. Rogers explained that the board could fund its forgivable loans programs. Turcotte then asked his fellow members whether it would be prudent to save the additional funds for a session in the future when the Legislature doesn’t have as much. Turcotte stated, “As we look forward, there will be times when we won’t have enough money to cover the projected expenses.” He said, “I’m trying to look ahead because again, I know there will be bleeding days ahead.” Daly wanted to know if the board could save funds for a “rainy-day.” Rogers stated that if the board doesn’t award and has a lot more carryover, people will question why they’re carrying so much money. The board discussed plans to create a scholarship for college students in foster care. Rogers updated the board about the Governor’s Emergency Education Relief Summer Grant Program. Rogers’ office will provide up to $3.5million to students who are behind in their courses due to the pandemic. Rogers stated that she believes OSFA will be able to award all funds this summer.