Students see cuts on scholarship awards, loan programs
ALBANY — Reducing staff and travel expenses and scrimping on supplies aren’t the only ways the state is going to save money this year. Students around New York will do their small part to help close a $5 billion budget gap.
Children of fallen emergency workers, offspring of deceased or disabled veterans, families of people killed or severely disabled in the Sept. 11, 2001 terrorist attacks and others will see a 2 percent reduction in their scholarship awards — up to $341 less a year. The awards are entitlements, and since the state cannot control the number of people eligible for them, it is reducing the funds per student, according to the Higher Education Services Corp., which administers the scholarship funds.
The 22,000 students who receive one of eight loan-forgiveness and academic scholarship programs will be reduced by 422 people. People who agree to work in certain professional areas and regions of the state where there are high needs, such as physicians in rural areas and nursing faculty, receive reimbursement for their education for their service.
The state will spend a total of about $32.8 million for both types of scholarships this year.
The $121.7 billion state budget that took effect in April called for cutting spending in all state offices by 3.35 percent and reducing scholarships by 2 percent (with the exception of New York’s $755 million Tuition Assistance Program). Gov. David Paterson this week released the first two dozen approved financial plans for agencies. Ongoing economic problems in New York and the need to close a budget gap led to the reductions.
“It’s a modest, 2 percent reduction in all these awards to help close an over $5 billion budget gap and address the extremely difficult fiscal situation facing the state,” said Matt Anderson, a budget spokesman.
One notable exception to scale-backs is scholarships for combat veterans. Previously, they were eligible for $1,000 a semester. Now, veterans can get up to $4,288 annually to study at a public or private university in New York. The full State University of New York tuition and college fee for the year is $4,375, but the award is 2 percent less than that to conform with the other budget cuts.
Many more combat veterans will have access to the state funds. Members of the armed services who served in the Vietnam War or hostilities in the Persian Gulf or Afghanistan and were honorably discharged are eligible, as is anyone who served in the military in hostilities that occurred after Feb. 28, 1961 and were honorably discharged.
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