NYPIRG's Higher Education Project

Tapping Into TAP: An Inside Look at the Grant Award
Diana Breen, Conor Bambrick, Miriam Kramer, Jillian Starinovich
Endorsed by NYPIRG, SA, and USS

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Summary of Findings
Recommendations
Background
Calculating the Current TAP Awards: Examples
Students' TAP Awards Under the Proposed $1,400 SUNY Tuition Hike
SUNY Students' TAP Awards With $1,400 Tuition Hike and 1/3 TAP Cut
The Pataki Administration's Record on TAP
Milestones in the TAP Program
Trends in TAP
Conclusions
Recommendations
Methodology
Appendix A: NY Expenditures on TAP Compared With Other States
Appendix B: TAP Grants by Campus
Appendix C: TAP and Tuition
Appendix D: Effects on TAP from a $1,400 Tuition Increase and 1/3 TAP Cut
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SUMMARY OF FINDINGS
The purpose of this report is to educate policymakers, students, advocates, and the public about New York State’s Tuition Assistance Program (TAP) and to examine the potential impact of a $1,400 public college tuition increase as well as a tuition increase of this caliber coupled with a one-third reduction to TAP awards on students from several income brackets. Recent media reports have suggested that significant cuts to the TAP program are possible in the Governor’s upcoming budget proposal.

The analysis also explores the history of the grant award, looks at income eligibility and how it is calculated, and overviews the cuts and enhancements made to TAP since its inception.

The report finds the following:

A SUNY tuition increase will seriously impact many middle-income students currently receiving TAP awards.

Students with family incomes of $34,000 or more will see increases in "real" tuition if the proposed $1,400 increase goes into effect. Broken down by income, a typical family paying SUNY tuition would see increases in the cost of college as follows:

Students with family incomes of $35,000 would pay $120 more each year;

Students with family incomes of $40,000 would pay $720 more each year;

Students with family incomes of $45,000 would pay $1,320 more each year;

Students in family with incomes in excess of roughly $48,000 would pay $1,400 more they do now.

The last three tuition increases have been coupled with TAP cuts.

In 1991-1992: SUNY tuition increased $650, CUNY tuition was increased by $500; all TAP awards were reduced by $75.

In 1992-1993: SUNY tuition increased $500; CUNY tuition was increased by $600, and the 1991-92 reductions to TAP awards continued.

In 1995-1996: SUNY and CUNY tuition increased $750 and while the minimum award increased by $175, maximum TAP was reduced by $225 and all awards were reduced by 10%.

Another tuition increase coupled with TAP cuts will exacerbate the impact on the state’s poorest students.

A worst-case scenario situation of a $1,400 tuition increase and one-third TAP cut, as proposed by the Governor last year, would force a SUNY student from the poorest income family to pay $1,600 more than they pay now for tuition (under the current TAP system, those students do not pay tuition).

A tuition increase will still hurt many students since TAP does not fully cover the real cost of higher education.

TAP covers only tuition, not fees, which average $991 a year at SUNY’s four-year colleges.

Part-time students are not eligible for TAP.

RECOMMENDATIONS

Based on the following survey of TAP and the strong possibility that the Governor might recommend a steep tuition hike as well as financial aid cuts, the report makes the following recommendations for TAP in the 2003-04 budget:

Maintain current minimum ($500) and maximum ($5,000) award levels.

Allow all current recipients to benefit from enhanced levels, so that even students who enrolled before 1999-2000 can receive the current $500 minimum and $5,000 maximum grants.

Eliminate the "upper cut" reduction for third- and fourth-year students.

Expand part-time TAP to include SUNY and the private colleges.

The state should commit itself to increasing TAP support for graduate students. Under the current TAP program, the maximum award is $550 for graduate students who already have a higher tuition than undergraduates.

Allow TAP to include fee costs.

Maintain eligibility levels for minimum grants and increase maximum levels to families with $8,000 incomes.

Don’t cut or cap TAP awards.

BACKGROUND
What is the Tuition Assistance Program?
The Tuition Assistance Program, or TAP, is financial aid granted to New York State students who attend public and independent colleges and universities. The size of the award is based on a sliding income scale. The lower the income of the student and his family, the greater the size of the financial assistance. TAP is granted to eligible undergraduate and graduate students attending a public or independent college or university in New York State. TAP may be used by eligible students to cover tuition costs, but students cannot use the grant money to fund other college expenses such as fees, room and board, or books.

TAP is one of the most comprehensive financial aid programs in the nation and New York provides the more grant aid than any other state. Since TAP’s inception in 1974, more than three million students have received over $9 billion towards their college education. Currently, nearly 60% of full-time students statewide receive TAP.

TAP is administered by the New York State Higher Education Services Corporation (HESC), which was also created in 1974. HESC began as a combination of Higher Education Assistance Corporation, a non-profit that managed student loans, and the Regents Examination and Scholarship Center, a group that dealt with financial aid. HESC administers financial aid and student loans (both state and federally funded).

Who is eligible for TAP?
There are also a number of requirements students must fulfill to receive the awards:

TAP-eligible students can only receive support for a fixed number of years. Undergraduate students enrolled in four-year programs may receive up to four years of assistance for full-time study, and up to five years of assistance in an approved, specialized program (such as remediation).

Students must maintain good grades. Students must maintain, at least, a cumulative "C" average after receipt of two annual payments. In addition, students must be matriculated in an approved program of study and be in good academic standing.

TAP-eligible students must maintain full-time status. Students must study full time (at least 12 credits per semester) at an approved post-secondary institution in New York State.

Other requirements. In order to receive TAP, students must not be in default on a student loan guaranteed by HESC and not be in default on any repayment of State awards.

Upper-class students. Third and fourth-year students’ are eligible for TAP awards, but their grants are reduced by $100, known as the "upper cut."

Graduate Students. Graduate students may also receive TAP awards. The current maximum award for graduate students is $550 and the minimum award is $75.

How is TAP eligibility calculated?
As listed above, there are many criteria for students to fulfill to be eligible for TAP. If applicants fulfill the above categories, their awards are allotted based on income eligibility.

The chart below shows the income eligibility ceilings and formula for calculating TAP awards. There are a number of different award schedules used to determine eligibility. This chart considers the average TAP recipient who is an undergraduate at a degree-granting college or university who is financially dependent on his/her parents or financially independent but married or has tax dependents. This award schedule applies to first-time recipients in the academic year 2000-2001 and after. It is the award schedule used through out this report.

Note: The maximum TAP award for students following this schedule is $5,000 (or full tuition if it is lower than $5,000), while the minimum award is $500. The size of the TAP annual award is reduced by $100 after four semesters (see "upper cut" above).

Net Taxable Income

Award calculation (by reduction)

$7,000 or less

Student is eligible for as much as $5,000 or tuition, which is lower.

$7,001 - $11,000

7% of excess over $7,000

$11,001 - $18,000

$280 + 10% of excess over $11,000

$18,001 - $80,000

$980 + 12% of excess over $18,000 (or $500 minimum)

$80,001 or more

No award

CALCULATING THE CURRENT TAP AWARD: EXAMPLES
How much aid a student receives is based on an income formula that determines the size of the TAP award. Eligible students whose family income is $7,000 or less receives the maximum award of $5,000 or the entire cost of tuition, whichever is lower (with no award reduction), while a student whose family income is $80,000 receives the minimum award of $500.

A student in an income bracket between $7,000 and $80,000, however, needs to calculate his/her award using a formula. For the purposes of this report, the Higher Education Services Corporation’s "quick award" calculator was used to compare students. Here are five examples of how a SUNY student would calculate his or her award (the following calculation only looks at awards to first and second year students, those in their third and fourth year would see a "upper cut" reduction of $100):

Example #1, student and parents’ combined income is $10,000. First, the student would calculate the award reduction and then subtract that number from $3,400 to figure out the TAP award. $10,000 is $3,000 larger than $7,000. So, the student would take 7% of $2,999 — roughly $210 — and subtract that from $3,400 — or $3,190. $3,190 would be the TAP award.

Example #2, student and parents’ combined income is $15,000. Using the formula provided in the award calculation chart, the student receives a TAP award reduction of roughly $680 ($280 plus $400, $15,000 is $4,000 over the excess of $11,000). The student’s award is then $2,720.

Example #3, student and parents’ combined income is $20,000. Using the formula provided in the award calculation chart, the student receives a TAP award reduction of $1,220, ($980 + $240 — 12% of $2,000, the excess of $18,000). The student’s award is then $2,180.

Example #4, student and parents’ combined income is $30,000. Student again calculates his/her award using the above formula. The TAP award reduction equals $2,420, so the student receives an award of $980.

Students with incomes of $34,000 and above. It is important to note the wide range of the last income bracket. Students with base incomes ranging from $34,000 to $80,000 receive the same minimum award ($500) and a tuition bill of $2,900.

STUDENTS’ TAP AWARDS UNDER THE PROPOSED $1,400 SUNY TUITION HIKE
This section examines the size of the TAP awards for SUNY students when considering a $1,400 tuition increase, recently recommended by the SUNY Board of Trustees. Assuming that maximum and minimum awards, award schedules, and other characteristics of TAP are not changed, below is an analysis of the possible TAP payments for students of various income brackets based on the above awards and a $1,400 tuition increase.

Assuming that the criteria for minimum and maximum awards will remain the same and, therefore, the awards for students earning corresponding incomes will remain the same. This analysis also assumes that there will neither be no award reductions nor will there be changes to the award schedule. According to this analysis, if a SUNY tuition hike is imposed, students in middle-income brackets will find that their TAP awards are no longer sufficient to cover the increased tuition. The examples below use the calculations for award reductions from the previous page and the current tuition plus the proposed $1,400 increase to show how students of various incomes be affected by a tuition hike (the following calculation only looks at awards to first and second year students, those in their third and fourth year would see a "upper cut" reduction of $100):

Example #1, student and parents’ combined income is $10,000. First, the student would calculate the award reduction and then subtract that number from $4,800 to figure out the TAP award. $10,000 is $3,000 larger than $7,000. So, the student would take 7% of $2,999 — roughly $210 — and subtract that from $4,800 — or $4,590. $4,590 would be the TAP award. Students in this income bracket would not be affected by the tuition increase.

Example #2, student and parents’ combined income is $15,000. The previous calculation for this income bracket showed that the student receives an award of $2,720. When a $1,400 tuition increase is factored in, the award increases to $4,120. In both cases the student would be responsible for $680 of tuition. This would be the same amount that student is currently responsible to pay. So, despite the $1,400 tuition hike, this SUNY student would not have to pay more.

Example #3, student and parents’ combined income is $20,000. As seen previously, a student earning this income receives an award of $2,180. When a $1,400 tuition increase is factored in the award increases to $3,580. In both cases the student would responsible for $1,220 of tuition. This would be the same amount that student is currently responsible to pay. So, despite the $1,400 tuition hike, this SUNY student would not have to pay more.

Example #4, student and parents’ combined income is $30,000. When tuition is $3,400 the student would receive an award of $980. If tuition is $4,800 the award increases to $2,380. In both cases the student would be responsible for $2,420 of tuition. This would be the same amount that student is currently responsible to pay. So, despite the $1,400 tuition hike, this SUNY student would not have to pay more.

Note: If tuition is raised to $4,800, the income level that would require students to pay more begins at $34,009 (a student making this much would have to pay $1 more than if tuition were $3,400). The difference in the amount the student would have to pay will go up until it hits $1,400 (when income level reaches $45,667).

Example #5, student’s and parents’ combined income is between $45,667 and $80,000. With a tuition hike, then the student receives a minimum TAP award of $500 and a tuition bill of $4,300.

SUNY STUDENTS’ TAP AWARDS WITH A $1,400 TUITION HIKE COMBINED WITH A 1/3 CUT AS PROPOSED IN THE GOVERNOR’S 2002-03 EXECUTIVE BUDGET

Last year, Governor Pataki’s budget proposal included a significant cut to TAP. In his proposal, each student would receive two-thirds of his or her TAP award during the semester and the remaining one-third plus interest would be deferred until after the student’s graduation. The Governor argued — despite the fact that TAP awards cease after four years of college — that his proposal would create an incentive for students to graduate "on time," or after four years. If the student did not graduate, he or she would not receive the third portion of the award. This proposal was rejected by the legislature.

The following analysis assumes a worst-case scenario based on the Governor’s previous plan: TAP awards would be reduced by one-third and tuition would be increased by $1,400. This analysis shows the impact these changes would have on students from various income brackets.

Again, this analysis uses the same schedule used earlier and assumes that minimum and maximum award levels will remain the same. Therefore, previous calculations regarding awards and award reductions (including those based on the proposed tuition hike) still apply (the following calculation only looks at awards to first and second year students, those in their third and fourth year would see a "upper cut" reduction of $100):

For students with incomes of $7,000 and less, the maximum award applies. However, they would not receive the full payments of $4,800 while attending school. These students would receive a payment of two-thirds, or about $3,200 per year, while enrolled in college. The remaining $1,600 per year (plus interest) would be awarded only upon graduation.

For students receiving the minimum award of $500 (those with incomes in the range of $46,667 to $80,000), payments of about $333 would be received each year of enrollment while the years’ remaining $167 would not be received until after graduation.

Example #1, student’s and parents’ combined income is $10,000. A SUNY student with this income receives a TAP award of $4,590 if tuition is set at $4,800. Using last year’s TAP proposal as a model, a SUNY student would receive a yearly TAP payment of $3,060. The student would receive a bill that combined the remaining third of the award (That portion withheld under the Governor’s plan), $1,530, plus the $210 that he/she would already have to pay, resulting in a new bill totaling $1,740.

Example #2, student’s and parents’ combined income is $15,000. A student earning this income would receive an award of $4,120 after a tuition hike. However, if the Governor’s TAP proposal was in place, only $2,474 would be awarded during the school year. When considering the remaining third of $1,373 plus $680 that the TAP award would not cover, a SUNY student with this income would receive a yearly SUNY bill of $2,053.

Example #3, student’s and parents’ combined income is $20,000. Students earning this income would receive awards of $3,580 after a tuition hike. However, yearly awards during enrollment would equal only $2,387 using last year’s model. The remaining third, $1,193, plus the added cost of $1,220 from the tuition hike that would not be covered by TAP, would result in an annual bill of $2,413 for SUNY students.

Example #4, student’s and parents’ combined income is $30,000. Students earning this income would receive awards of $2,380 after a tuition hike. With a one-third cut, they would receive only $1,587, or 33% of their tuition covered by TAP. They would receive a bill for $793, the remaining third, plus the $2,420 not covered by TAP, equaling a bill of $3,213.
Example #5, student’s and parents’ combined income is $35,000. Students earning this income would receive awards of $1,780 after a tuition hike. With a cut of one-third, students would actually receive payments of $1,187. They would then receive bills of $593, the remaining one-third, plus the $3,020of tuition that TAP does not cover, resulting in a tuition bill of $3,613.

THE PATAKI ADMINISTRATION’S RECORD ON TAP

1995-1996: The Governor proposed the elimination of Graduate TAP as well as STAP (Supplemental TAP, an additional year or two semesters of the award for students who participated in remedial courses.). (The Administration also proposed eliminating funding for opportunity programs.) Note that this is the same year as a $750 tuition hike at SUNY and CUNY. In the end, tuition increased and TAP was capped by $3,900 for independent college students and by 90% for public college students. That meant that CUNY and SUNY recipients would only get 90% of their awards and would have to pay the other 10%, $320 and $340, respectively, out of their pockets.

1996-1997: The Administration proposed to decrease the amount of TAP awards by counting a part of the federally funded Pell Grant to tuition. (The Governor proposed a $250 tuition hike, which was rejected by the legislature.) The TAP proposal was rejected by the legislature.

1997-1998: No major cuts TAP proposed. The Administration did approve the legislature’s $80.5 million increase to TAP expenditures and raising the minimum award from $100 to $275. (However, the Governor proposed a $400 tuition hike, which was rejected by the legislature.)

1998-1999: Governor Pataki’s Administration proposed limiting maximum TAP awards to only those students who take 15 credits or more (3 credits above what is considered a full-time course load). The Governor also proposed capping the awards at 75%, instead of the 90% cap that was continued from 1995-96. The 90% cap was continued.

1999-2000: The Administration approved the legislature’s agreement to increase the maximum TAP award to $4,125.

2000-2001: Proposals included a $40.1 million cut to TAP, although the Administration later approved the legislature’s rejection of this proposal plus an additional $21.3 million in funding to the program. Other approvals were a phase-out on the 90% cap on awards and the increase of the maximum TAP award to $5,000. (Another proposal this year was a $10.8 million reduction in funding to opportunity programs; this recommendation was rejected and funding for opportunity programs increased slightly.)

2001-2002: The Administration did not propose any cuts to TAP, but recommended a $13.8 million cut to opportunity programs, which was approved by the legislature.

2002-2003: The Pataki Administration proposed a "graduation incentive." TAP recipients would receive two-thirds of their awards while in college. The remaining one-third (plus interest) would be granted to the students when, and only if, they graduate. (Other campus programs were also targeted for cuts. The Administration proposed to carry over the $13.8 million cut to opportunity programs and the $4 million cut to child care programs from the previous year. Another proposal was an additional cut to the EOP opportunity program.) All these proposals were rejected by the legislature.

MILESTONES IN THE TAP PROGRAM

Following is a brief summary of changes to the award as well as tuition increases and changes in the number of recipients statewide.

1974-1975

TAP is created.

Major features included a maximum award of $1,500, awards calculated by a sliding scale based on a student’s family’s State Net Taxable Income (NTI), and an "uppercut" (a $200 award reduction after four semesters of payment).

1975-1976

The number of student recipients increased by 12.5%.

Expenditures increased to $110.4 million.

The average award increased 24.5% to $417 per student.

1976-1977

The imposition of tuition at CUNY increased the number of TAP recipients by 35.8%, adding 100,000 more students.

1977-1978

Maximum TAP was increased $300 to $1,800 and the minimum award was doubled to $200.

The number of recipients dropped 2.8%.

Expenditures increased 14.5% to $207.1 million.

The average award increased 17.9% to $592.

1978-1979

Beginning with this year, recipients were counted on the basis of full time equivalency (FTE). TAP awards were granted to 317,078 FTE recipients.

Expenditures increased to $225.3 million.

1980-1981

The number of FTE students receiving TAP decreased by 3.2% from 318,582 in 1979-1980 (the highest number ever of FTE students with TAP) to 308,489.

1981-1982

The maximum TAP award was increased to $2,200, while the minimum award was increased to $250.

Supplemental TAP (STAP), which offered an additional year of financial aid to those students with learning difficulties or who take remedial classes, was introduced.

The income ceiling was increased from $20,000 to $25,000.

The number of FTE recipients rose 2.5% to 316,056.

Tuition at SUNY was hiked by $150 to $1,050.

1982-1983

The number of FTE students dropped by 1.9% from 316,056 to 310, 017.

Expenditures grew to $298.1 million.

The average award increased to $962.

Tuition at all CUNY colleges increased by $150 to $1075.

1983-1984

The number of FTE recipients fell by 1.6% to 305,006.

Expenditures rose to $331.2 million.

The average award rose by 12.9% to $1,086.

Tuition at SUNY increased by $300 to $1,350, while CUNY tuition grew by $150 to $1,225.

1984-1985

Maximum TAP rose to $2,700.

The minimum award was increased to $300.

The number of FTE recipients increased to 307,754.

The average award rose by 12.9% from $962 to $1,086.

Expenditures grew by 15.2% from $331.2 million to $381.7 million.

The average award increased by 14.2% to $1,240.

1985-1986

The number of FTE students decreased by 5.8% from 307,754 to 289,835.

Expenditures were cut by 5.8% to $359.6 million.

1986-1987

The number of FTE students dropped by 1.2% to 286,499.

The maximum award increased to $2,850.

The minimum TAP award rose to $350.

The income ceiling increases from $29,000 to $32,000.

Expenditures grew to $398.4 million.

The average award increased 12% from $1,241 to $1,390.

1987-1988

The number of FTE students decreased by 6.2% to 268,779.

Annual expenditures decreased by 7.3% from $398.4 million to $369.4 million.

The average TAP award granted per student fell for the first time since TAP’s creation. It was decreased by 1.2% from $1,390 to $1,374.

1988-1989

The number of FTE students dropped by 3.8% to 258, 628.

Annual expenditures decreased by 3% to $358.4 million.

The average award fell by 0.8% to $1,385.

The income eligibility ceiling grew from $32,000 to $34,250.

1989-1990

The maximum award increased 28.1% to $3,650.

Expenditures grew to $387.8 million.

FTE recipients grew to 267,417.

The average award increased to $1,450.

The income eligibility ceiling was increased to $42,500.

1990—1991

The New York State Legislature enacted emergency legislation to address a budget deficit. All non-maximum TAP awards were slashed by $100 for spring 1991.

Maximum awards rose to $4,125.

FTE recipients rose to 279,260.

Expenditures grew to $435.3 million.

Meanwhile, tuition at public colleges and universities increased. SUNY tuition increased $150 to $1500, tuition at four-year CUNY schools rose $100 to $1350, and the tuition at CUNY community colleges rose $113 to $1338.

1991-1992

All TAP awards were cut by $75.

Minimum annual awards were reduced from $350 to $100 for undergraduate students.

Students who did not receive maximum awards faced an additional cut in their aid.

Award reduction schedules were cut by one percentage point. Students’ awards were cut based on a sliding income. The new award reduction schedule increased that cut even further.

The average award increased 13.9% from $1,559 to $1,776.

Expenditures rose 17.4% to $511.1 million.

For the second year in a row, tuition at public colleges and universities was increased. SUNY tuition grew by $650 to $2,150. At CUNY four-year colleges, it grew $500 to reach $1,850, while community colleges saw a $412 increase to $1,750.

1992-1993

The cuts to students’ financial aid from the previous year were continued for this year, including the $75 cut across the board, the reduction of minimum awards, and the cut to award reduction schedules.

First-time TAP recipients had their awards calculated from 1989-1990 schedules.

The maximum award was slashed to $3,650.

Expenditures grew to just under $600 million.

FTE recipients grew to 308,303.

The average award increased 9.4% to $1,943.

1993-1994

Cuts to TAP instituted in the 1991-1992 school year were carried over for this academic year. Again, this included a $75 cut to all students’ financial aid, further reductions to those receiving non-maximum awards, a reduction of the minimum award, and a cut to award reduction schedules.

First-time TAP recipients’ awards were again calculated using the 1989-1990 schedules.

FTE recipients, expenditures, and the average award all saw increases of fewer than 1%.

1994-1995

First-time recipients saw the minimum award increased to its 1990-1991 level of $350.

The extra one percentage point on schedules that previously increased award reductions was eliminated.

TAP cuts instated in the 1991-1992 academic year were carried over for all students who were not first-time recipients.

The number of FTE recipients fell 2.2% from 309,114 to 302,382.

Expenditures grew 4.3% to $630.9 million.

The average award increased to $2,086.

1995-1996

The maximum award was slashed to $3900 or 90% of the student’s tuition — whichever was least expensive.

The net taxable income (NTI) ceiling for first-time recipients in the academic years of 1989-1990, 1992-1993, and 1993-1994 was reduced to $42,500. First-time recipients from the academic year 1988-1989 and all previous years found the NTI ceiling reduced to $34,250. Any families earning more than those amounts annually were not eligible for TAP.

The minimum award for first-time recipients in 1994-1995 and 1995-1996 grew to $275, yet the minimum award for all other undergraduate students remained at a mere $100.

The cuts to the award reduction schedules and the $75 award decrease from 1991-1992 were carried over for yet another year.

The number of FTE recipients decreased 5.3% to 286,221.

Annual expenditures dipped 2.3% from $630.9 million to $616.1 million.

The average award grew to $2,153.

However, tuition at public universities and colleges increased. SUNY undergraduates found themselves paying an extra $750 for a total of $3400. CUNY students attending a four-year college saw their tuition increased $750 to $3200, and those attending a two-year college paid another $400, bringing the tuition to $2500.

1996-1997

Cuts to TAP instated in 1991-1992 were carried over for this year’s students as well.

The Legislature also decided that any students receiving need-based financial aid, such as TAP, must earn a cumulative grade average of C or above upon the conclusion of their second academic year in order to continue to receive the scholarship.

The number of FTE recipients dipped 2.2% to 279,813.

Expenditures saw a minimal increase.

The average award grew to $2,215.

1997-1998

The legislature raised the minimum award to $275 for all eligible students, not just first-time recipients. Although this helped many students, even this amount is lower than the minimum award in 1984, when it was $300.

The number of FTE recipients dropped 1.1% to 276,315.

The average award grew to $2,268.

Expenditures rose to $626.6 million.

1998-1999

The awards were limited to only eight semesters. Students studying for more than eight semesters no longer received TAP financial support.

The number of FTE recipients receiving TAP dropped 4.2% to 264,652.

Annual expenditures on TAP decreased 2.6% from over $626 million to just over $610 million.

The average award dipped to $2,306.

The maximum award was restored to $4,125.

1999-2000

The number of FTE recipients dropped 4% to 254,020.

Annual expenditures on TAP fell 4.8% to $581 million.

2000-2001

The 90% cap on awards enacted in 1998-1999 was eliminated.

The maximum award grew to $5,000.

Minimum awards saw an increase to $425.

The number of FTE recipients rose a full 13%.

Annual TAP expenditures rose 9.3% to $634.7 million.

The average award dropped to $2,195.

The "uppercut" (a term used to refer to the award reduction after a student’s first two years of payment) was cut from $200 to $150, increasing those students’ awards by $50.

2001-2002

The number of FTE recipients increased an estimated 3.4%.

Annual expenditures rose an estimated 6.3%.

2002-2003

Minimum award enhanced from $425 to $500 for new recipients.

TRENDS IN TAP
In many instances, the reductions and enhancements to TAP awards are not immediately obvious to students and families impacted. Following are a number of measures implemented by New York State to the awards. These are trends in TAP’s history that may reappear in the Governor’s proposal or the final budget for 2003-04.

Use of award schedules from years past to determine students’ awards for first-time TAP recipients.

This trend can be observed in the changes made to the TAP program in 1992-1993 and 1993-1994. This poses the problem of rising inflation costs for which the students were not compensated. Also, the reference year from which these awards are determined is 1989-1990, the year before a tuition hike. Assuming that this allotment was substantial before the tuition hike, it was no longer enough with the increased tuition levels.

Enhancements made to awards for first-time recipients only.

Conversely, first-time recipients are often the only beneficiaries of enhancements to the awards. For instance, in 2001-02, the minimum level rose by $75 to $500, but only new students or first-time TAP recipients were eligible for these enhanced levels. Other recipients merely continued to receive their previous award amounts.

Decreases in a student’s payments after a certain length of time.

This refers to award reductions for those students who are not first time recipients and the "uppercut." Some students may find that award reductions that apply to them do not apply to first-time recipients. Conversely, many TAP enrichments apply only to first-time recipients and not to other students. In addition, these students are affected by the "uppercut", a decrease in TAP payments after two years.

These changes in payment can financially hurt students for staying in school. For many students, cost is a huge factor when considering what college or university to study at, and for some, cost determines if they will be able to further their education or not. When awards are suddenly reduced after students’ first years and they have no other source of funding, many students may face the harsh realization that they may not be able to graduate.

Eligibility for TAP based on merit and need instead of solely on need.

In 1996-1997, the legislature enacted a change to TAP stating that all recipients must maintain a C average or above upon the completion of two semesters of college to continue receiving TAP payments. Before this date, TAP was granted solely based on students’ financial need, regardless of their academic standing. Although this requirement is waived under extenuating circumstances, such as death of a student’s relative or injury,this policy may have the perverse effect of forcing students most likely to need financial assistance into programs that are less demanding intellectually.

CONCLUSIONS
Current college students have much to worry about considering the upcoming year’s expected budget deficit and New York’s history of higher education and financial aid funding during austerity years. Many nervously await word of possible cuts to their financial aid as well as a tuition hike, expenses that their families cannot afford.

Students are hit doubly hard when they face reductions in their financial aid as well as a tuition hike in the same year. The combination of tuition hikes and TAP cuts hit students in 1990-1991, 1991-1992, and 1995-1996 (every year this past decade that there was a tuition hike). During these years, not only were students hit with a tuition increase anywhere from $100 to $750, but they were also told that the financial aid on which they depended on would either not be increased to meet the rise in cost or would be cut. When taking a $150 tuition increase into account as well as the award reduction of $100, a SUNY undergraduate in 1990-1991 would find themselves shouldering an additional $250 for school. That is on the low end of the spectrum. As a result of the 1995-1996 TAP reduction, a SUNY undergraduate receiving the maximum award would end up paying $340 more, and an undergraduate attending a four-year CUNY school receiving the maximum award would need to pay an extra $320 after the tuition hike of that year.

Budget cuts mean they will have to scrounge around to somehow find that extra money to fund their education. Some college students will work longer hours, instead of dedicating that precious time to their studies. Others will take out hundreds or thousands of dollars in loans and go into debt that they can’t afford. For other students, cuts to financial aid mean an even more drastic ending. If they simply do not have the resources to fund their education, these students may drop out of school, ending or significantly delaying their college careers.
RECOMMENDATIONS

Based on our survey of TAP and the strong possibility that the Governor might recommend a steep tuition hike as well as financial aid cuts, the report makes the following recommendations for TAP in the 2003-04 budget:

Maintain current minimum ($500) and maximum ($5,000) award levels.

Allow all current recipients to benefit from enhanced levels, so that even students who enrolled before 1999-2000 can receive the current $500 minimum and $5,000 maximum grants.

Eliminate the "upper cut" reduction for third- and fourth-year students.

Expand part-time TAP to include SUNY and the private colleges.

The state should commit itself to increasing TAP support for graduate students. Under the current TAP program, the maximum award is $550 for graduate students who already have a higher tuition than undergraduates.

Allow TAP to include fee costs.

Maintain eligibility levels for minimum grants and increase maximum levels to families with $8,000 incomes.

Don’t cut or cap TAP awards.
METHODOLOGY
This report shows the history of TAP since its creation in 1974. It focuses on major changes (enrichments and cuts) to the program and the impacts those changes made on students.

In our analyses of TAP and its relation to tuition, we did not include fees other than tuition. All calculations are also independent of any other scholarships or grants students may accrue.

Calculations of students’ TAP awards with a $1,400 tuition increase and one-third award reductions were done using the standard schedule of eligibility used throughout the report. Percentages and dollar amounts are rounded to the nearest whole number.

To determine the legislative changes made to TAP, we used data from the Higher Education Services Corporation (HESC). When speaking of data such as minimum and maximum awards, tuitions and income ceilings, they apply to undergraduate students at a degree-granting institution, except where otherwise noted. Most data also apply to students who are deemed, for tax purposes, financially dependent or financially independent but married or with tax dependents, unless otherwise noted. We chose to primarily use examples from these categories (undergraduates at a degree-granting institution who are either financially dependent or financially independent but married or with tax dependents) because the majority of TAP recipients fall into these categories. Recipients, average awards, and annual expenditures, however, rely on both graduate and undergraduate data, as noted in information from the New York State Higher Education Services Corporation.

The data in the chart showing the recipients and average awards per campus are based on information from statistical reports from the New York State Education Department. The number of full time undergraduate and graduate recipients for both semesters of the academic year 1999-2000 were added to form the column titled "Full Time Recipients." The amount of annual expenditures for each campus was divided by the number of full time recipients at that campus. This gave us the average award per student per campus, which was roundest to the nearest dollar. Those schools that do have any enrolled students that receive TAP were omitted from the chart.

Figures for SUNY and CUNY tuitions were obtained from the Office of the State Comptroller.

The data do not include statistics on part-time TAP, which was instated in CUNY schools in 1999-2000. Part-time TAP aids students who take a course load that is considered to be part time (11 credits or less); their awards are pro-rated according to the number of credits taken each semester.

Throughout the report, all dollar figures are in "current" non-adjusted dollars and rounded when speaking of annual expenditures and average awards. Percentages are also rounded.

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