A bill proposed to increase funding for financial aid won a small victory Wednesday, passing the state's Senate Committee of Higher Education.
Sens. Harry Mitchell, D-Tempe, Linda Gray, R-Phoenix, and Rep. Laura Knaperek, D-Tempe, introduced Senate Bill 1487 which, if passed in the state Legislature, would create an influx of funds for the Arizona Financial Aid Trust.
The bill still has to pass the House and Senate and get Gov. Janet Napolitano's signature before becoming law.
The legislators worked with the Arizona Students Association, a student-run organization that lobbies the Legislature to bring more support and attention to Arizona's universities, which is fighting for financial aid.
The trust fund is for students in underrepresented communities or with special needs.
The funding comes from students and the state.
Fifty percent of the money collected goes directly to the fund and the other 50 percent goes to an endowment.
One percent of every tuition payment goes toward AFAT and that money is matched equally by the state. If the bill passes, the state would match tuition funding on a 2-to-1 ratio.
Sophie O'Keefe-Zelman, an ASA board member and ASU's Undergraduate Student Government president, said there is too much money held up in the endowment when it could be helping students.
The endowment was set up to collect interest to finance grants and scholarships and has $36.8 million in it.
Mitchell said he agrees with O'Keefe-Zelman, but still sees a reason for the endowment.
"Without the endowment there is no money for grants," he said.
The bill would change the parameters of the endowment, keeping it with 25 percent of funds collected in the future and giving 75 percent to the trust.
Maceo Brown, the executive director of ASA, said legislators worked well with his organization in proposing the bill.
"There was definitely a good cooperation," he said. He was particularly pleased they were able to garner bipartisan support.
With that support, Brown said he hopes AFAT will eventually aid 9,600 students.
Three thousand students get scholarships from AFAT now.
Arizona Board of Regents President Gary Stuart said financial aid is vital to the college system and the board specifically supported this bill.
"Without good financial aid, we don't have good access to the system," he said. "There are lots of families who can't afford the real cost of an education."
Reach the reporter at michael.famiglietti@asu.edu.
