Bracey Harris

The Clarion-Ledger

In moves that will impact more than 1,000 students, the Mississippi Office of Student Financial Aid will suspend payments to certain forgivable loan and payment programs and reduce award amounts for others in an effort to curb a nearly $10.4 million projected shortfall this year.

Beginning July 1, forgivable loans will be halted for the state's forgiveness programs for certain counselors and school administrators, graduate teachers, health care professionals, nursing teachers and minority veterinary medicine students, affecting 48 recipients. Another change: Loans will be extended only to renewal applicants for most undergraduate and graduate forgivable loan programs, disqualifying nearly 1,000 students.

SEE ALSO: Tuition going up in Mississippi

Although the office did not take a budget cut, Jim Turcotte, who chairs the Mississippi Postsecondary Education Financial Assistance Board, said in a news release that the reductions were necessary because the demand for state financial aid exceeded available funds for the 2016-2017 year. State statue requires all undergraduate grants be fully funded before any loans, even renewal loans, and no awards be eliminated for the Mississippi Tuition Assistance Grant, Mississippi Eminent Scholars Grant or the Higher Education Legislative Plan for Needy Students.

Turcotte cited a "significant" increase in recent years in the number of students eligible to receive state aid programs. According to the release, the greatest increase was to Higher Education Legislative Plan for Needy Students, as the result of more low-income students demonstrating "college readiness and eligibility" for financial assistance.

PLANNING AHEAD: Board votes to reopen Miss. Prepaid Affordable College Tuition Program

While full awards will continue to the HELP program, Jennifer Rogers, director of the State Financial Aid Office, said the Legislature froze a scheduled threshold increase from $39,500 to $42,500 that was to take place this year. The move edged out 225 students who would have qualified for the program.

One cost-saving measure, changing the definition of a full-time student, could resort in a heavier course load for all undergraduate recipients. In the past, the board defined a full-time student as someone taking 12 credit hours per semester and the HELP program provided full tuition to qualified students for up to five years. Now the number has been bumped up to 15 credit hours per semester, and students' eligibility for HELP is limited to eight semesters.

The change brings HELP in alignment with the Mississippi Tuition Assistance Grant and Mississippi Eminent Scholars Grant, both of which limit assistance to eight semesters. Rogers said students, such as seniors in their final semester, who can demonstrate they have less than 15 hours left in their course catalog can appeal to take fewer hours.

Turcotte explained the purpose is to spur recipients to "Finish in Four," or complete college in four years.

“Reduced time in college ultimately saves students and their families thousands of dollars and makes college more affordable,” Turcotte said.

Contact Bracey Harris at bharris2@gannett.com or 601-961-7248. Follow @braceyharris on Twitter

Mississippi campus news: June 12