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<DIV><FONT face=Arial size=2><FONT face="Times New Roman"><FONT size=3><SPAN
class=434042818-29042010>To Financial Aid
Officers:</SPAN></FONT></FONT></FONT></DIV>
<DIV><FONT face=Arial size=2><FONT face="Times New Roman"><FONT size=3><SPAN
class=434042818-29042010></SPAN></FONT></FONT></FONT> </DIV>
<DIV><FONT face=Arial size=2><FONT face="Times New Roman"><FONT size=3><SPAN
class=434042818-29042010></SPAN>As you are aware, there remains significant
budget uncertainty for 2010-11 for all state-funded agencies and programs as the
Oklahoma Legislature continues to struggle with a major revenue shortfall.<SPAN
style="mso-spacerun: yes"> </SPAN>As part of the discussion with
legislative appropriation committees this spring, the State Regents have been
asked to determine the impact of a possible 10% cut in state appropriations to
most programs due to continuing state revenue shortfalls.<SPAN
style="mso-spacerun: yes"> </SPAN></FONT></FONT></DIV>
<DIV>
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"urn:schemas-microsoft-com:office:office" /><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Final appropriation levels may not be known until the legislative session
concludes at the end of May.<SPAN style="mso-spacerun: yes"> </SPAN>The
State Regents are scheduled to meet on May 28 to determine final allocations of
state appropriations to programs and institutions. </FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>In this context, we want to provide you as much information as we can,
even though that information is not final.<SPAN style="mso-spacerun: yes">
</SPAN>Following are brief summaries of the current funding status of the major
financial aid programs administered by the State Regents.</FONT></P>
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size=3> </FONT></o:p></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
face="Times New Roman"><B style="mso-bidi-font-weight: normal"><U>Oklahoma’s
Promise</U></B> – Fortunately, the 2007 legislation creating a dedicated funding
process for Oklahoma’s Promise has already set aside full funding of $57 million
for the program for 2010-11.</FONT></FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT
face="Times New Roman"><FONT size=3><?xml:namespace prefix = st1 ns =
"urn:schemas-microsoft-com:office:smarttags" /><st1:place w:st="on"><st1:State
w:st="on"><B
style="mso-bidi-font-weight: normal"><U>Oklahoma</U></B></st1:State></st1:place><B
style="mso-bidi-font-weight: normal"><U> Tuition Aid Grant (OTAG)</U></B> --
During the Regent’s Update at the annual OASFAA conference we projected a
possible FAFSA filing cutoff for 2010-2011 OTAG awards <SPAN
class=434042818-29042010>of</SPAN> April 1st.<SPAN
style="mso-spacerun: yes"> </SPAN>The April 1st date assumes no reduction
in current state funding for the program.<SPAN style="mso-spacerun: yes">
</SPAN>The primary reason for the possible April 1st deadline in 2010 compared
to an April 30 deadline in 2009 is a significant increase of 17%-19% in
potentially eligible OTAG recipients compared to the same time period last
year.</FONT></FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>If OTAG state funding is cut by 10%, it would also result in the loss of
federal LEAP and SLEAP matching funds.<SPAN style="mso-spacerun: yes">
</SPAN>The total loss in funding for OTAG would be about $2.8 million ($1.9
million state funding + $875,000 LEAP/SLEAP).<SPAN
style="mso-spacerun: yes"> </SPAN>Under this scenario, we expect we would
have to move the FAFSA filing cutoff back to about March 25th.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>As you are aware, an official OTAG application cutoff cannot be set until
the Legislature has made appropriations and those appropriations have been
allocated by the State Regents.<SPAN style="mso-spacerun: yes"> </SPAN>We
plan to announce the official cutoff date shortly after the Regent’s May 28
meeting.<SPAN style="mso-spacerun: yes"> </SPAN>In the meantime, it is
critical that you clearly communicate to potential OTAG awardees that final
eligibility will be contingent upon the ultimate level of funding
available.</FONT></P>
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size=3> </FONT></o:p></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
face="Times New Roman"><B style="mso-bidi-font-weight: normal"><U>Academic
Scholars Program</U></B> – The current appropriation base for the Academic
Scholars Program is $8.6 million.<SPAN style="mso-spacerun: yes">
</SPAN>In addition, the program has a very modest trust fund that provides a
small amount of reserves.<SPAN style="mso-spacerun: yes"> </SPAN>A 10% cut
would equate to $860,000 and could require further depletion of the trust fund
to ensure full funding of awards in 2010-11.</FONT></FONT></P>
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size=3> </FONT></o:p></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
face="Times New Roman"><st1:State w:st="on"><st1:place w:st="on"><B
style="mso-bidi-font-weight: normal"><U>Oklahoma</U></B></st1:place></st1:State><B
style="mso-bidi-font-weight: normal"><U> Tuition Equalization Grant
(OTEG)</U></B> – The current base appropriation for OTEG is about $3.8
million.<SPAN style="mso-spacerun: yes"> </SPAN>However the amount
actually allocated to the program in 2009-10 was $4.0 million due to an
additional $200,000 in prior year carryover funds.<SPAN
style="mso-spacerun: yes"> </SPAN>The carryover funds have been used in
2009-10.<SPAN style="mso-spacerun: yes"> </SPAN>Consequently, a 10% cut
from the $3.8 million level would result in an allocation of about $3.4 million
for 2010-11.</FONT></FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="mso-spacerun: yes"><FONT face="Times New Roman"
size=3></FONT></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
face="Times New Roman"><B style="mso-bidi-font-weight: normal"><U>Concurrent
Enrollment Tuition Waiver reimbursements and National Guard Tuition Waivers
reimbursements</U></B> for state system institutions – the reimbursements for
these two programs are administered directly by the State Regents Fiscal
Division.<SPAN style="mso-spacerun: yes"> </SPAN>Questions related to the
potential funding situation of these programs are best directed through your
institutional business officer to the Regents’ Fiscal
Division.</FONT></FONT></P>
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size=3> </FONT></o:p></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>We sincerely regret the funding uncertainties our programs face this
year.<SPAN style="mso-spacerun: yes"> </SPAN>We hope this information
provides some context as you approach the coming school year.<SPAN
style="mso-spacerun: yes"> </SPAN>We will try to provide additional
updates as we are able.</FONT></P></FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV> </DIV>
<DIV align=left><FONT face=Arial size=2>Bryce Fair</FONT></DIV>
<DIV align=left><FONT face=Arial size=2>Associate Vice Chancellor for
Scholarships & Grants</FONT></DIV>
<DIV align=left><FONT face=Arial size=2>Oklahoma State Regents for Higher
Education</FONT></DIV>
<DIV align=left><FONT face=Arial size=2>Phone: 405-225-9162</FONT></DIV>
<DIV align=left><FONT face=Arial size=2>Fax: 405-225-9392</FONT></DIV>
<DIV align=left><FONT face=Arial size=2>e-mail: </FONT><A
href="mailto:bfair@osrhe.edu"><FONT face=Arial
size=2>bfair@osrhe.edu</FONT></A></DIV>
<DIV align=left><FONT face=Arial size=2></FONT> </DIV>
<DIV align=left><FONT face=Arial size=2>Mailing address:</FONT></DIV>
<DIV align=left><FONT face=Arial size=2>P.O. Box 108850</FONT></DIV>
<DIV align=left><FONT face=Arial size=2>Oklahoma City, OK
73101-8850</FONT></DIV>
<DIV align=left><FONT face=Arial size=2></FONT> </DIV>
<DIV align=left><FONT face=Arial size=2>Street address:</FONT></DIV>
<DIV align=left><FONT face=Arial size=2>655 Research Parkway, Suite
200</FONT></DIV>
<DIV align=left><FONT face=Arial size=2>Oklahoma City, OK
73104</FONT></DIV>
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