Proposal would cut private college grants for low-income Tennesseans, increase some for public institutions

Low-income students who want to attend private colleges and universities in Tennessee could see less state grant money under new legislation state lawmakers are considering.

Senate Majority Leader Mark Norris, R-Collierville, has added an amendment to existing legislation that would would reduce the state's need-based Tennessee Student Assistance Award grants by as much as 50 percent.

Norris has said the purpose of the amendment is to address a disparity between grants awarded to private school students and those awarded to public school students.

According to the current TSAA grant structure, community college students are eligible for $1,300 grants, public four-year campus students are eligible for $2,000 and students who attend the state's Tennessee Independent Colleges and Universities Association are eligible for $4,000 grants.

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The amended measure states that no student enrolled in a private institution with financial need can receive a student assistance grant that exceeds those awarded to a student with the same financial need attending a public institution.

Norris said the amendment came after the independent college association worked against the Gov. Bill Haslam's Compete to Complete bill that would require students to take 30 hours per year and to obtain a degree in four years.

The senator said the amendment wasn't retaliatory, but was a response to disparities that were found when the association came under the scrutiny of lawmakers.

"TICUA has done everything it could to take the private four-year schools out of that bill and sort of discriminate against the public schools," Norris said. "It’s been a difficult deal and that caused a number of bodies to start looking more closely into TICUA and who they are and what they do and how they do it."

Norris said the state currently funds $110 million a year for the grants, and that the Tennessee Higher Education Commission advised lawmakers that an additional 10,000 students could be served by reducing the disparity.

"The question arises as to why the favoritism towards private schools and what is that costing the state," he said. "The TSSA grants are being given disproportionately to private school students, so a student who goes to Rhodes gets $4,000 and one who goes to the University of Memphis gets $2,000.

"It’s discriminatory, it’s unfair and it needs to be fixed," he said.

Christian Brothers University President John Smarrelli said the school currently receives about $1.1 million from this fund every year. The money goes toward offsetting tuition, he said, and 97 percent of students receive some type of financial aid. About 30 percent of the Memphis school's population is first-generation students, and about 40 percent of students qualify for federal Pell grants.

"We educate individuals with great need," Smarrelli said, noting that the amendment from Norris was a surprise.

Smarrelli sent a Tweet criticizing the amendment and asking for parents and students to reach out to legislators to stop it from becoming law.

Tuition at private institutions costs more, he said, and therefore the proportion of aid a student receives should be more if they choose to attend an independent college.

"For us, losing a need-based scholarship program through the state, even a significant portion of it, would be devastating," Smarrelli said. "It’s too important for the students we serve, particularly in the Memphis area."

The bill, sponsored by Rep. Eddie Smith, R-Knoxville, and Sen. Dolores Gresham, R-Somerville, originally dealt with driver education.

Reporter Jennifer Pignolet contributed to this story.

Reach Reporter Jordan Buie at 615-726-5970 or by email at jbuie@tennessean.com. Follow him on Twitter @jordanbuie.