Lawmakers seek to prop up falling STARS program

Push to restore funding for scholarships
Tuesday, May 06, 2008 • BY ANA M. ALAYA Star-Ledger Staff

Lawmakers said they want Gov. Jon Corzine to restore $2.5 million to NJ STARS for next year while they explore other ways to scale back ballooning costs and fix fundamental problems with the college scholarship program.

Students and college leaders told the Assembly Higher Education Committee in Trenton yesterday they oppose the governor's budget proposal to impose a $100,000 family income limit on eligibility for NJ STARS, which guarantees a free county college education to top high school graduates. The intention is to keep the best and brightest students in-state.

The change would disqualify about 700 to 800 high school students planning to attend county colleges on STARS in September.

"I was shocked when I heard that they wanted to put a cap on STARS," said Lacey Plichta, who attended Middlesex County College with a STARS scholarship and is attending Rutgers University with STARS II. "The program was created to be merit-based."

Lawmakers and college leaders alike agreed an income cap would be unfair to incoming freshmen, but they also said there are fundamental problems with the financing and academic eligibility requirements of the popular STARS and STARS II.

State officials say the program has become a victim of its own success. Launched in 2004 to stem the exodus of high school graduates from the state, the Student Tuition Assistance Reward Scholarship pays tuition and fees at community colleges for high school students who graduate in the top 20 percent of their class. STARS students who attend full time and maintain a 3.0 grade-point average are eligible to finish their college career for free at a New Jersey four-year college under the STARS II program.

The scholarship program has nearly 5,000 recipients in county and four-year colleges. Roughly 30 percent of STARS students at two- year schools are from families earning $100,000 or more, county college officials said. At the four-year colleges, about 40 percent of STARS II recipients are from families with a combined income of at least $100,000.

Assemblyman Patrick Diegnan (D-Middlesex), who chairs the Assembly's Higher Education Committee, said he will ask Corzine on Thursday to rescind his proposed income cap on NJ STARS and form a committee of college leaders and lawmakers to find money-saving alternatives.

Among the ideas discussed at the hearing yesterday were to no longer cover college fees for scholarship recipients, or to no longer require four-year colleges to cover the entire cost of tuition. Currently four-year colleges like Rutgers and Montclair only get about $4,000 from the state, about half of the cost of tuition, and cover the rest. The 2007-08 estimated cost for the state's four-year schools is more than $3 million.

Courtney McAnuff, vice president for enrollment management at Rutgers, said an "unintended consequence" of the program structure is some STARS II students are being subsidized by classmates with better academic credentials and lower incomes.

Corzine recently said he is open- minded about ways to scale back STARS I and STARS II.

"It's an open issue, and it needs to be studied," Corzine said. "And I do believe that when we have scarce resources we ought to means test. ... Most aid at universities, even in merit-based situations, is often means-tested."

In addition to the ballooning costs, lawmakers and higher education officials were concerned many scholarship recipients are academically underprepared for college. About 30 percent of the stu dents need remedial courses.


© 2008 The Star-Ledger. Used by NJ.com with permission.

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