AB 381

This bill makes changes to the Wisconsin grant program administered by the

Higher Educational Aids Board and other changes related to financial aid for higher

education.

Wisconsin grants

Under current law, HEAB administers the Wisconsin grant program, which

provides grants to resident undergraduate students enrolled at least half-time in

University of Wisconsin System schools, technical colleges, private nonprofit

colleges, and tribal colleges in this state. HEAB limits its award of these grants to

10 semesters or the equivalent. For students enrolled in UW System schools,

technical colleges, and tribal colleges, HEAB must award Wisconsin grants based on

a formula that accounts for expected parental and student contributions and is

consistent with generally accepted definitions and nationally approved needs

analysis methodology. For students enrolled in private nonprofit colleges, the

amount of the grant that HEAB awards is based on a mathematical calculation

specified by statute. All Wisconsin grants are subject to a minimum and maximum

grant amount.

This bill makes the following changes to the Wisconsin grant program:

1. The bill removes the requirement that a student must be enrolled at least

half-time to be eligible for a Wisconsin grant. The bill also specifies that, to be

eligible for a Wisconsin grant, a student must be enrolled in a degree, certificate, or

other program leading to a recognized educational credential and be maintaining

satisfactory academic progress.

2. The bill extends, from 10 semesters to 12 semesters or the equivalent, the

limit on the total number of semesters a student may receive a Wisconsin grant. The

bill also specifies that, if a student receiving a grant is enrolled less than full time

in a semester or session, only the fraction of the student's enrollment, in proportion

to full-time enrollment, is applied toward this 12-semester limit.

3. The bill eliminates the statutory mathematical calculation used to

determine the amount of a Wisconsin grant awarded to a student enrolled in a

private nonprofit college. Instead, the bill aligns the statutory language for HEAB

to determine the amount of a Wisconsin grant for each of the four types of higher

education institution. Under the bill, HEAB must award Wisconsin grants based on

the current federal need analysis formula. This standard accommodates changes to

the federal need analysis methodology included in the federal FAFSA Simplification

Act of 2019 that are scheduled to take effect in the 2024-25 academic year.

4. The bill modifies provisions related to minimum and maximum grant

amounts, which are currently established by statute. Under current law, the

minimum annual grant amount is $250. For students enrolled in UW System

schools, technical colleges, and tribal colleges, the maximum annual grant amount

is $3,150. For students enrolled in private nonprofit colleges, HEAB establishes the