University of Hawaii at Hilo students rely on financial aid more than ever before, prompting administrators to seek more in donations.
Last year, UH-Hilo awarded $46 million in financial aid, compared with just $15 million less than a decade ago, according to Interim Vice Chancellor for Student Affairs Gail Makuakane-Lundin.
“There are multiple factors (for the increases),” she said. “I think that we find that that’s what’s happening across the nation in terms of high unemployment, in terms of a greater need of people wanting to come to school now, in terms of increased costs, and in terms of increases in tuition.
“Compounding that, there are more economically disadvantaged families because of the economy, and there’s a greater need in students looking for aid.”
Meanwhile, she explained, federal Pell Grant amounts given to economically disadvantaged students haven’t kept up with the growing need, leaving an ever larger vacuum in financial aid.
“At one point in time, the maximum Pell Grant could pay for a student’s full annual tuition here,” Makuakane-Lundin said. “That’s not true anymore.”
In an effort to keep up with the growing need for financial aid, the school increased in 2011 the percentage of tuition used for that purpose from 15 percent to 20 percent. With tuition intake totaling $35 million last year, that means that up to $7 million was reserved for need-and merit-based aid for students, according to UH-Hilo Chancellor Donald O. Straney.
“A high priority for us is to keep the UH System accessible to all eligible students in the state,” Straney wrote in a Monday column for faculty and staff. “UH Hilo is blessed with donated funds for scholarships and other forms of aid that offset the impact of tuition increases. But we will need to increase scholarships over the next few years if we want to remain accessible to all our island students. To make college affordable to all, this must be a priority for our campus and for our community.”
Studies have shown that people who possess college degrees have a much higher earning potential over their lives compared with those who do not, he said, and people with a degree are better able to contribute to or build healthy communities.
“But as tuition and other costs rise, higher education becomes less affordable to students from middle- and low-income families,” Straney wrote. “Because of this, we need to do everything we can to give all qualified students access to the funds they need.”
Of last year’s $46 million in financial aid for UH-Hilo students, 75 percent came from state and federal grants and loans. An additional 11 percent comes from tuition and is designated for need- and merit-based aid. Another 12 percent of student aid comes from sources such as hometown Rotary Clubs or parent loans.
The remaining 3 percent comes from endowed scholarship donations, the majority of which are managed by the UH Foundation. It’s an area where UH-Hilo is looking to encourage growth, according to Straney.
“Behind every scholarship is an individual or a company that has a connection to UH-Hilo and a desire to help our students. Individuals and organizations donate funds to UH-Hilo for scholarships because they may see it is an investment in the future; Scholarships enable more students to prepare to enter the workforce. Alumni donate funds because they may realize the importance of an education and want to pay forward the opportunities given them while at UH-Hilo,” he wrote.
Endowments can come from all areas of the community. Former Hawaii County Councilman Jimmy Arakaki and his wife, Grace, made a donation to establish an endowed scholarship to benefit business students. Audrey Furukawa, after retiring from UH-Hilo, established a scholarship endowment supporting study abroad. And a charitable trust helps to grow the Helene Hale “Citizen of the World” Scholarship Endowment.
“On behalf of our students, I’d like to take this opportunity to express gratitude to our donors,” Straney wrote. “I hope members of our University and local communities, business people, alumni, and others will be inspired to make an investment in the future of our island by funding scholarships.”
For more information about the UH Foundation, visit uhfoundation.org.
Email Colin M. Stewart at cstewart@hawaiitribune- herald.com.
