15-1642. Financial aid trust fund; aid to students with verifiable financial need; endowment

A. The Arizona board of regents may establish a financial aid trust fund for the purposes of providing immediate aid to students with verifiable financial need, including students who are underrepresented in the population of university students or who by virtue of their special circumstances present unique needs for financial aid, and creating an endowment for future financial aid. Subject to the limits provided in subsection B, paragraph 3 of this section, the board may assess a surcharge on registration fees paid by students for deposit in the fund. The fund shall also consist of monies deposited pursuant to section 15-1670, subsection F.

B. The board shall adopt rules to govern the financial aid trust fund, including the following:

1. Twenty-five percent of the monies received each year shall be placed in the trust fund as a permanent endowment. The remaining monies received shall be used for immediate aid for students with verifiable financial need. At least fifty percent of the immediate aid monies shall be used for grant aid.

2. The immediate aid monies shall be distributed to the universities on a pro rata basis based on relative student contributions to the fund.

3. The surcharge on student registration shall not exceed one percent of the registration fee for students taking more than six credit surcharge hours. The surcharge hours for students taking fewer than seven credit hours shall equal one-half the surcharge assessed students taking more than six credit hours.

C. Each dollar raised pursuant to the surcharge on student registration shall be matched by $2 appropriated by the legislature.

D. The board shall report every three years to the legislature on the status of the financial aid trust fund. The report shall include the use to which the monies have been put and the impact of such use.

E. Fund monies shall only be used in university assistance programs approved by the board and such monies shall be in addition to, and not in replacement of, existing state or institutional financial aid monies. Assistance may be provided to full-time or part-time students. Monies appropriated by this state shall not be used to provide assistance to students who are not residents of this state.