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Board Report #01-14

2001-02 Wisconsin Higher Education Grant and Wisconsin Tuition Grant Program Formulas

 

WISCONSIN HIGHER EDUCATION GRANT

Introduction

I have included below the 2000-01 WHEG formulas for both the University of Wisconsin System and the Wisconsin Technical College System to be used as a reference. The general structure of the WHEG formula is outlined in the State Statutes. The components within may be adjusted to incorporate changes in the cost of education, the Federal Methodology which determines the Expected Family Contribution, the number of applicants which relates to the number of students who enroll, and the available funding.

If the Student Budget is increased, the amount awarded to each student would increase and the number of students eligible would decrease. The number of recipients would also increase if additional funding would be available to support the increase in eligibility.

If the Student Award Percentage is increased, the amount awarded each student would increase and the number of students eligible would decrease. The number of recipients would also increase if additional funding would be available to support the increase in eligibility.

 

2000-01
WISCONSIN HIGHER EDUCATION GRANT
UNIVERSITY OF WISCONSIN SYSTEM

The following formula was implemented in 2000-01 for both dependent and independent students.

Student Budget $3,000
minus Expected Family Contribution
x Student Award Percentage 50%
= Award
MAXIMUM AWARD IS $1,500

 

2000-01
WISCONSIN HIGHER EDUCATION GRANT
WISCONSIN TECHNICAL COLLEGE SYSTEM

The following formula was implemented in 2000-01 for both dependent and independent students.

Student Budget $7,000
minus Expected Family Contribution
x Student Award Percentage 15%
= Award
MAXIMUM AWARD IS $1,050

 

Formula Elements Known at This Time

Applicants: The number of 2001-02 UW System applicants will most likely increase slightly. Enrollment within the WTC System schools may also increase slightly.

Federal Methodology (which determines the Expected Family Contributions): There will not be any substantial changes in the formulas for 2001-02.

Appropriation: The 2001-02 appropriation for the UW System WHEG is unknown at this time. 2001-02 is the first year of the biennial period. The State Biennial Budget should be known by the start of the new fiscal year, which is July 1, 2001. It is expected, at this time, that the programs will not experience an increase for the first year of the biennial period. If this is the case, funding for 2001-02 will be as follows:

Tuition Increase: The UW System tuition is estimated to increase between five and seven percent in 2001-02. The WTC System Board 2001-02 tuition percentage increase is unknown at this time.

 

Points to Consider in Setting the WHEG Formula

Most recent data indicates that both the UW System WHEG and the WTC System Board WHEG 2000-01 formulas will come close to spending the appropriated amount for the academic year. There is however some carry forward funds from 1999-00 that will most likely exist that will be spent through special grant awarding in 2000-01.

 

The 2001-02 WHEG Formulas

With the preceding information in mind, I put forth the following.

Assuming the 2001-02 WHEG Program funding will remain the same, along with other "formula elements," as they were in 2000-01 the following options exist:

  1. 2000-01 formulas could be adjusted to spend more in 2001-02 due to possible unspent funds.

  2. 2000-01 formulas could be used in 2001-02 without any adjustments assuming the 2000-01 formulas will spend the full 2000-01 appropriations.

Assuming the 2001-02 WHEG Program funding will increase at the rate of tuition, which is estimated to increase between five and seven percent at a four-year public institution, the following options exist:

  1. 2000-01 formulas could be adjusted to spend more in 2001-02 due to an assumed increase in the WHEG appropriations. However, if the appropriations are not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

  2. 2000-01 formulas could be adjusted to spend more in 2001-02 due to possible unspent funds in 2000-01 and an increase in the WHEG appropriations. However, if the appropriations are not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

The UW System Administration and the WTC System Board will each forward their recommendations for the 2001-02 WHEG Formulas prior to the February 16th meeting. The Executive Secretary will make her recommendations for the 2001-02 WHEG Formulas at the February Board Meeting.

 

2001-02 WHEG-UW Simulations
(Created 2-14-01)

Commitments Calculated using 2000-01 Appropriation: $18,900,300
Formula Format: (Student Budget - EFC) x % Factor = Award

  Data from 1999-2000 Year-End Edit Voucher File  
FORMULA: 99-00 End of Year Simulation 1 Simulation 2 00-01 Year to Date
Student Budget Dependent and
Independent
Formulas
$3,120 $3,290 $3,000
Less: EFC 0 0 0
% Factor 50% 47% 50%
Maximum Award:   $1,560 $1,546 $1,500
DEPENDENT  
Applicants 57,096 57,096 57,096 55,052
% of Applicants 76.66% 76.66% 76.66% 77.08%
Number of Awards 7,679 13,852 14,420 12,035
% of Awards 34.25% 56.14% 57.27% 54.42%
% of Eligible 13.45% 24.26% 25.26% 21.86%
Average Award $1,123 $1,017 $1,005 $1,063
$'s Committed $8,626,439 $14,080,951 $14,498,678 $12,797,197
  32.87% 51.40% 51.34% 51.19%
INDEPENDENT  
Applicants 17,384 17,384 17,384 16,370
% of Applicants 23.34% 23.34% 23.34% 22.92%
Number of Awards 14,743 10,820 10,758 10,080
% of Awards 65.75% 43.86% 42.73% 45.58%
% of Eligible 85.81% 62.24% 61.88% 61.58%
Average Award $1,195 $1,231 $1,277 $1,210
$'s Committed $17,619,549 $13,316,145 $13,740,383 $12,200,655
  67.13% 48.60% 48.66% 48.81%
TOTALS  
Applicants 74,480 74,480 74,480 71,422
Number of Awards 22,422 24,672 25,178 22,115
% of Eligible 30.10% 33.13% 33.81% 30.96%
Average Award $1,171 $1,110 $1,122 $1,130
$'s Committed $26,245,988 $27,397,096 $28,239,061 $24,997,852
  100.00% 100.00% 100.00% 100.00%
COMMITTED 138.87% 144.96% 149.41% 132.26%
00-01 Appropriation
119.33%
00-01 Appropriation
+ Carryforward
Data from 1st School on FAFSA.

Simulation 1: Increase the maximum award by $60 and increase the student budget by $120 to spend just beyond the projected 2000-01 unspent.
Simulation 2: Increase the maximum award by $46 and increase the student budget by $290 to spend beyond the appropriation. The goal being to tie the student budget to actual tuition.

 

2001-02 WHEG-WTC Simulations
(Created 2-14-01)

Commitments Calculated using 2000-01 Appropriation: $13,201,900
Formula Format: (Student Budget - EFC) x % Factor = Award

  Data from 1999-2000 Year-End Edit Voucher File  
FORMULA: 99-00 End of Year Simulation 1 Simulation 2 00-01 Year to Date
Student Budget Dependent and
Independent
Formulas
$7,000 $7,000 $7,000
Less: EFC 0 0 0
% Factor 15.43% 16% 15%
Maximum Award:   $1,080 $1,120 $1,050
DEPENDENT  
Applicants 13,852 13,852 13,852 14,125
% of Applicants 38.52% 38.52% 38.52% 38.39%
Number of Awards 2,798 8,171 8,220 7,669
% of Awards 13.00% 31.03% 29.40% 29.68%
% of Eligible 20.20% 58.99% 59.34% 54.29%
Average Award $1,069 $753 $778 $751
$'s Committed $2,991,116 $6,154,566 $6,394,338 $5,761,268
  15.25% 25.21% 23.28% 26.20%
INDEPENDENT  
Applicants 22,108 22,108 22,108 22,664
% of Applicants 61.48% 61.48% 61.48% 61.61%
Number of Awards 18,721 18,160 19,738 18,174
% of Awards 87.00% 68.97% 70.60% 70.32%
% of Eligible 84.68% 82.14% 89.28% 80.19%
Average Award $888 $1,005 $1,068 $893
$'s Committed $16,618,357 $18,259,004 $21,074,934 $16,228,933
  84.75% 74.79% 76.72% 73.80%
TOTALS  
Applicants 35,960 35,960 35,960 36,789
Number of Awards 21,519 26,331 27,958 25,843
% of Eligible 59.84% 73.22% 77.75% 70.25%
Average Award $911 $927 $983 $851
$'s Committed $19,609,473 $24,413,570 $27,469,272 $21,990,201
  100.00% 100.00% 100.00% 100.00%
COMMITTED 157.45% 184.92% 208.07% 166.57%
00-01 Appropriation
153.78%
00-01 Appropriation
+ Carryforward
Data from 1st School on FAFSA.

Simulation 1: Increase the maximum award by $30 to spend just beyond the projected 2000-01 unspent.
Simulation 2: Increase the maximum award by $70 to spend beyond the appropriation.

 

TRIBAL WISCONSIN HIGHER EDUCATION GRANT

Introduction

I have included below the 2000-01 Tribal WHEG formula to be used as a reference. As indicated above, the general structure of the WHEG formula is outlined in the State Statutes. The components within may be adjusted to incorporate changes in the cost of education, the Federal Methodology that determines the Expected Family Contribution, the number of applicants which relates to the number of students who enroll, and the available funding.

If the Student Budget is increased, the amount awarded to each student would increase and the number of students eligible would decrease. The number of recipients would also increase if additional funding would be available to support the increase in eligibility.

If the Student Award Percentage is increased, the amount awarded each student would increase and the number of students eligible would decrease. The number of recipients would also increase if additional funding would be available to support the increase in eligibility.

 

2000-01
WISCONSIN HIGHER EDUCATION GRANT
WISCONSIN TRIBAL COLLEGES

The following formula was implemented in 2000-01 for both dependent and independent students.

Student Budget $6,560
minus Expected Family Contribution
x Student Award Percentage 27.44%
= Award
MAXIMUM AWARD IS $1,800

 

Formula Elements Known at This Time

Applicants: The number of 2001-02 Tribal College applicants may increase slightly.

Federal Methodology (which determines the Expected Family Contributions): There will not be any substantial changes in the formulas for 2001-02.

Appropriation: The 2001-02 appropriation for the Tribal WHEG is unknown at this time. 2001-02 is the first year of the biennial period. The State Biennial Budget should be known by the start of the new fiscal year, which is July 1, 2001. It is expected, at this time, that the program will not experience an increase for the first year of the biennial period. If this is the case, funding for 2001-02 will be as follows:

Tuition Increase: The tuition at both Tribal Colleges will either remain the same or increase slightly in 2001-02.

 

Points to Consider in Setting the Tribal WHEG Formula

Most recent data indicates that the Tribal WHEG 2000-01 formula will spend the appropriated amount for the academic year. To date a waiting list for recipients exists for 2000-01.

 

The 2001-02 Tribal WHEG Formula

With the preceding information in mind, I put forth the following.

Assuming the 2001-02 WHEG Program funding will remain the same, along with other "formula elements," as they were in 2000-01 the following options exist:

  1. The 2000-01 formula could be used in 2001-02 without any adjustments assuming the 2000-01 formulas will spend the full 2000-01 appropriations. This would most likely result in a waiting list for recipients for 2001-02.

  2. The 2000-01 formula could be adjusted to spend less in 2001-02, which would reduce or eliminate the possibility of a waiting list for recipients for 2001-02.

Assuming the 2001-02 WHEG Program funding will increase at the rate of tuition, which is estimated to increase between five and seven percent at a four-year public institution, the following options exist:

  1. The 2000-01 formula could be used in 2001-02 without any adjustments. Assuming additional funding, the possibility of a waiting list for recipients for 2001-02 would decrease. However, if the appropriation is not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

  2. The 2000-01 formula could be adjusted to spend more in 2001-02 due to an assumed increase in the WHEG appropriations. Assuming additional funding, the possibility of a waiting list for recipients for 2001-02 would decrease. However, if the appropriation is not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

The Tribal Colleges will each forward their recommendations for the 2001-02 Tribal WHEG Formula prior to the February 16th meeting. The Executive Secretary will make her recommendations for the 2001-02 Tribal WHEG Formula at the February Board Meeting.

 

2001-02 Tribal WHEG Formula Data

  1999-2000
DATA AS OF
July 30, 2000
1999-2000
DATA AS OF
January 18, 2000
2000-01
DATA AS OF
February 6, 2001
Numbers Committed 585 369 458
Numbers Spent 299 171 247
% of Students Spent 51.11% 46.34% 53.93%
Dollars Committed $933,945.79 $668,340.00 $748,158.13
Dollars Spent $374,867.40 $134,724.00 $207,826.00
% of Students Spent 40.14% 20.16% 27.78%
Appropriation $400,000.00 $400,000.00 $400,000.00
Overaward 233.49% 167.09% 187.04%
Student Budget $1,800 $1,800 $1,800
% of Students Spent 50.00% 50.00% 27.44%
Maximum Award $1,800 $1,800 $1,800
Allocation $400,000.00 $400,000.00 $400,000.00
Carry Over     $36,983.40
Total Available Funds $400,000.00 $400,000.00 $436,983.40
  Carry over due to late refunds.
Wait list implemented in October.
"W" codes in October, 2000.
Data from First Four Schools on FAFSA.

Tribal Colleges include:
Lac Courte Oreilles Ojibwa Community College
College of the Menominee Nation

 

WISCONSIN TUITION GRANT

Introduction

I have included the 2000-01 WTG formula to be used as a reference. The structure of the WTG formula is outlined in the State Statutes. The components within may be adjusted to incorporate changes in the cost of education, the Federal Methodology which determines the Expected Family Contribution, the number of applicants which relates to the number of students who enroll, and the available funding.

If the Inflation Factor (found in step four) were increased, the amount awarded each student would decrease, as would the number of students showing eligibility.

If the tuition charged increases at a higher percentage than the UW Madison tuition, the amount awarded each student would increase, as would the number of students showing eligibility. The number of recipients, however, would decrease if additional funding would not be available to support the increase in eligibility.

If the Base Maintenance increases at a higher percentage than the Net Tuition, the amount awarded each student would increase, as would the number of students showing eligibility. The number of recipients, however, would decrease if additional funding would not be available to support the increase in eligibility.

 

2000-01 WISCONSIN TUITION GRANT FORMULA

STEP
ONE
Dependent Independent,
no Children
Independent
with Children
TUITION (insert actual tuition charged) $6,135 $6,135 $6,135
- UW MADISON TUITION $3,735 $3,735 $3,735

NET TUITION $2,400 $2,400 $2,400
STEP
TWO
TUITION (insert actual tuition charged) $6,135 $6,135 $6,135
+ BASE MAINTENANCE $6,245 $6,245 $10,444

TOTAL COST $12,370 $12,370 $16,579
STEP
THREE
NET TUITION $2,400 $2,400 $2,400
DIVIDED BY TOTAL COST $12,370 $12,370 $16,579

FAMILY CONTRIBUTION PERCENTAGE 19.40% 19.40% 14.48%
STEP
FOUR
FAMILY CONTRIBUTION (insert actual EFC) $1 $1 $1
x INFLATION FACTOR 251% 674% 814%

ADJUSTED FAMILY CONTRIBUTION $251 $674 $814
STEP
FIVE
ADJUSTED FAMILY CONTRIBUTION $251 $674 $814
x FAMILY CONTRIBUTION PERCENTAGE 19.40% 19.40% 14.48%

TUITION OFFSET $49 $131 $118
STEP
SIX
NET TUITION $2,400 $2,400 $2,400
- TUITION OFFSET $49 $131 $118

GRANT AMOUNT $2,351 $2,269 $2,282
 
UP TO MAXIMUM GRANT OF $2,300 $2,300 $2,269 $2,282

 

Formula Elements Known at This Time

Applicants: The number of 2001-02 applicants will most likely be similar to 2000-01 or will increase slightly.

Federal Methodology (which determines Expected Family Contributions): There will not be any substantial changes in the formulas for 2001-02.

Appropriation: The 2001-02 appropriation for the WTG is unknown at this time. 2001-02 is the first year of the biennial period. The State Biennial Budget should be known by the start of the new fiscal year, which is July 1, 2001. It is expected, at this time, that the program will not experience an increase for the first year of the biennial period. If this is the case, funding for 2001-02 will be as follows:

Tuition Increase: The tuition at the Independent Colleges and Universities will increase on the average by approximately five to seven percent. The tuition at UW Madison may increase between five and seven percent in 2001-02.

 

Points to Consider in Setting the WTG Formula

Past practice has been to increase the Base Maintenance at the rate of inflation. The rate of inflation recently has remained stagnant.

The UW Madison tuition reflected in the formula for 2000-01 is the actual tuition amount for that academic year.

Most recent data indicates that the WTG 2000-01 formula will spend the appropriated amount for the academic year. Funding was also carried forward from 1999-00. Data indicates that these funds will also be spent in 2000-01. To date a waiting list for recipients exists for 2000-01.

A statutory requirement exists that limits the WTG Program over commitment to 122%.

 

The 2001-02 WTG Formula

With the preceding information in mind, I put forth the following.

Assuming the 2001-02 WTG Program funding will consist just of the 2000-01 appropriation, and that other "formula elements" would remain the same as they were in 2000-01 the following options exist:

  1. The 2000-01 formula could be used in 2001-02 without any adjustments assuming the 2000-01 formulas will spend the full 2000-01 appropriations. This would most likely result in the implementation of a waiting list for recipients for 2001-02 much earlier than was implemented in 2000-01 due to the fact the no carry forward funds would be available to spend.

  2. The 2000-01 formula could be adjusted to spend less in 2001-02, which would reduce or eliminate the possibility of a waiting list for recipients in 2001-02.

Assuming the 2001-02 WTG Program funding will increase at the rate of tuition, which is estimated to increase between five and seven percent, the following options exist:

  1. The 2000-01 formula could be used in 2001-02 without any adjustments. Assuming additional funding, the possibility of a waiting list for recipients for 2001-02 would decrease. However, if the appropriation is not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

  2. The 2000-01 formula could be adjusted to spend more in 2001-02 due to an assumed increase in the WTG appropriations. Assuming additional funding, the possibility of a waiting list for recipients for 2001-02 would decrease. However, if the appropriation is not increased for 2001-02, awards would need to be reduced after the fact or funding would need to be carried back from 2002-03.

Most recent past practice has been to make adjustments evenly across each population of students (independent and dependent).

The Wisconsin Association of Independent Colleges and Universities will forward their recommendation for the 2001-02 WTG Formula prior to the February 16th meeting. The Executive Secretary will make her recommendation for the 2001-02 WTG Formula at the February Board Meeting.

 

2001-02 WISCONSIN TUITION GRANT FORMULA DATA

  1999-2000
DATA AS OF
January 18, 2000
2000-01
DATA AS OF
January 25, 2001
2000-01
DATA AS OF
January 25, 2001

Excluding "W" Codes
1999-2000
DATA AS OF
July 6, 2000
SIM ONE
Using July 6, 2000
DATA
SIM TWO
Using July 6, 2000
DATA
DEPENDENTS  
APPLICANTS 11,627 11,618 11,618 11,582 11,584 11,584
% OF APPLICANTS 65.32% 63.77% 63.77% 64.33% 64.34% 64.34%
AWARDS 6,850 8,970 9,035 6,852 9,006 8,753
% OF AWARDS 67.90% 69.19% 68.36% 67.21% 68.65% 69.10%
% ELIGIBLE 58.91% 77.21% 77.77% 58.93% 77.75% 75.56%
AVERAGE $'s $2,140 $2,180 $2,195 $2,117 $2,209 $2,171
$'s COMMITTED $14,658,671 $19,558,174 $19,835,051 $14,450,592 $19,890,363 $19,004,770
  67.59% 70.11% 68.31% 67.01% 68.84% 69.28%
SINGLE/MARRIED, NO DEPENDENTS  
APPLICANTS 3,047 2,609 2,609 3,145 3,145 3,145
% OF APPLICANTS 17.12% 14.32% 14.32% 17.47% 17.47% 17.47%
AWARDS 1,251 1,162 1,198 1,261 1,653 1,553
% OF AWARDS 12.40% 8.96% 9.06% 12.42% 12.60% 12.26%
% ELIGIBLE 41.06% 44.54% 45.92% 40.10% 52.56% 49.38%
AVERAGE $'s $2,164 $2,073 $2,140 $2,144 $2,181 $2,300
$'s COMMITTED $2,706,904 $2,409,042 $2,564,236 $2,704,088 $3,604,853 $3,604,853
  12.48% 8.64% 8.83% 12.54% 12.48% 13.14%
INDEPENDENT WITH DEPENDENTS  
APPLICANTS 3,127 3,992 3,992 3,277 3,276 3,276
% OF APPLICANTS 17.57% 21.91% 21.91% 18.20% 18.19% 18.19%
AWARDS 1,988 2,833 2,983 2,068 2,459 2,362
% OF AWARDS 19.70% 21.85% 22.57% 20.37% 18.75% 18.65%
% ELIGIBLE 63.58% 70.97% 74.72% 63.11% 75.06% 72.10%
AVERAGE $'s $2,174 $2,093 $2,225 $2,133 $2,195 $2,042
$'s COMMITTED $4,321,658 $5,929,557 $6,637,872 $4,411,608 $5,398,457 $4,822,375
  19.93% 21.26% 22.86% 20.46% 18.68% 17.58%
TOTALS  
APPLICANTS 17,801 18,219 18,219 18,004 18,005 18,005
AWARDS 10,089 12,965 13,216 10,154 13,118 12,668
% ELIGIBLE 56.68% 71.16% 72.54% 56.40% 72.86% 70.36%
AVERAGE $'s $2,150 $2,152 $2,197 $2,124 $2,203 $2,165
$'s COMMITTED $21,687,233 $27,896,773 $29,037,159 $21,566,288 $28,893,674 $27,431,998
  100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
OVERAWARD 110.30% 119.77% 124.66% 109.68% 137.34% 130.39%
STUDENTS 10,089 12,965 13,216 10,154 13,118 12,668
AVERAGE $2,150 $2,152 $2,197 $2,124 $2,203 $2,165
   
UW Tuition $3,405 $3,735 $3,735 $3,405 $3,735 $3,735
Inflation Factors  
Dependent Student 270% 145% 145% 308% 145% 170%
Single/Married Independent 725% 389% 389% 827% 389% 455%
Independent with Dependents 875% 470% 470% 998% 470% 550%
Base Maintenance  
Dependent/Single $6,245 $6,245 $6,245 $6,245 $6,245 $6,245
Independent with Dependents $10,444 $10,444 $10,444 $10,444 $10,444 $10,444
MAXIMUM AWARD $2,300 $2,300 $2,300 $2,300 $2,300 $2,300
APPROPRIATION $19,662,200 $23,292,847
includes carry over
$23,292,847
includes carry over
$19,662,200 $21,038,600 $21,038,600
    "W" codes
implemented 12/14/00.
Excluding "W" codes
and "Z" codes.
$2,254,247
was carried forward
  17% INCREASE IN
INFLATION FACTORS
FAFSA Data - school one only.

SIM ONE: Includes estimated 2001-02 school tuition amounts. All other formula factors are the same as 2000-01.
SIM TWO: Includes estimated 2001-02 school tuition amounts. Inflation factors have been increased by 17%.

 

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