UC proposes more aid for needy students

University of California President Mark G. Yudof on Thursday proposed boosting the university’s financial aid program to cover all academic fees for students from families with incomes of less than $60,000 a year.

Most low-income UC students already receive such aid, and officials said the plan would make only about 1,100 additional students eligible to have all fees covered. But the main purpose, Yudof said, would be to simplify UC’s confusing aid policies and encourage more needy students to attend one of the system’s nine undergraduate campuses.

“The fact is we need to demonstrate to low-income students that they can afford to attend the University of California,” Yudof said in a conference call with reporters. Current procedures, he said, are “too vague, too ambiguous.”

Outside experts generally praised the proposal, which they say could help ease recession worries for parents of college students.

The plan, which must be approved by UC’s regents, relies on federal and state programs such as Pell Grants and Cal Grants to remain the foundation of student aid. But for families with annual incomes below the state median of $60,000, UC would cover the rest of the basic fees, which next year are expected to total $7,800 annually for California resident undergraduates.

Currently, about 47,000 of UC’s 173,000 undergraduates receive about that amount in financial aid, and officials estimated that about 1,100 more students would be added next year under what Yudof calls the “Blue and Gold Opportunity Plan.”

Students with greater need would be eligible for additional grants for housing, food and books and other expenses, which can amount to an additional $15,000 a year.

UC officials said the plan would not reduce the aid currently available for families with incomes of $60,000 to $100,000. Half of those middle-income students now receive some help, averaging about $5,800 a year in UC or outside grants, they said.

UC campuses enroll student populations from economically diverse households, with about 40% earning more than $89,000 and about 35% earning less than $45,000, UC statistics show.

Yudof’s proposal, coming at a time when the state Legislature is preparing to cut funding for UC, would not require additional state money, officials said. UC typically sets aside one-third of the income generated by student fee hikes for increased financial aid for needy students. Yudof said the anticipated $3.1-million annual cost of the proposed reform would come from increasing the portion rolled back into financial aid from 33% to 36%.

However, the plan could face some trouble if the final state budget includes deep cuts to Cal Grants.

UC leaders are considering raising basic fees for California undergraduates by 9.4%, or about $662, for the school year starting in fall.

Yudof said he hoped his proposal might ease many families’ fears about rising costs of college education nationwide.

The regents are expected to review and vote on the aid plan at a meeting Feb. 4-5 in San Francisco.

Daniel J. Hurley, director of state relations and policy analysis for the American Assn. of State Colleges & Universities, praised Yudof for taking the action at a time of national economic uncertainty. Hurley also said that making the financial aid process more understandable sends “a very powerful message to low-income families” not to be afraid of applying for grants, he said.

At the Institute for College Access and Success, an independent think tank in Berkeley, program director Deborah Cochrane said it was unclear how the Yudof idea differed from what she described as UC’s already fairly generous aid policy, other than in declaring a clear promise to students. She urged eligible families to pay close attention to additional costs, such as housing and books, that are not guaranteed under the plan.

In related news, UCLA on Thursday announced a drive to raise $500 million for graduate student fellowships and undergraduate scholarships by mid-2013. UCLA Chancellor Gene Block and his wife, Carol, pledged $100,000 of their own, to be paid over the next five years, to help launch the campaign.

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larry.gordon@latimes.com