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LO SFA warns MJ Foster scholarship may run short this fall; officials map phased payments
Summary
LO SFA (student financial aid office) told the Board of Regents finance hearing it faces a cash shortfall in the MJ Foster adult scholarship, with payments phased and the risk that funds will run out before October without legislative action. LOSFA outlined a triaged disbursement schedule and urged systems to submit accurate fall billing quickly.
LO SFA (the state's student financial aid office) told the Board of Regents finance committee on Sept. 24 that the state's MJ Foster adult learner scholarship and several TOPS categories are under unusual cash pressure and could run short this academic year unless the legislature provides additional funding or another revenue source is allocated.
Simone (LOSFA senior official) described a tiered disbursement plan LOSFA is using to protect students who were already enrolled and to avoid promising scholarships that cannot be paid. She told regents: "We're gonna be blessed if we make it to October 1," and later warned that, "there will be no MJ for the spring" unless new funds are appropriated. LOSFA said it is accepting fall bills in a phased schedule to match available cash: (1) July'Aug term bills go first, (2) Sept'Oct bills are next if funds remain, and (3) later enrollments will be processed as money permits.
Why the shortfall matters
MJ Foster and TOPS constitute large recurring commitments that directly affect students' ability to enroll; a liquidity shortfall can force institutions to reverse account credits, leading to billing disruptions and student uncertainty. LOSFA stressed that the fund ledger is known at each billing cycle and that processing timing matters: colleges should submit accurate, timely fall bills so LOSFA can prioritize payments.
What LOSFA recommended
- Submit fall term billing promptly and accurately to allow LOSFA to apply funds to those with the earliest census dates.
- Systems and campuses should prepare contingency messaging to students in case appropriations fall short.
- Regents and system leaders should engage the legislature on the size of MJ Foster funding and TOPS projections as part of the November/December budget cycle.
Ending
LOSFA cautioned regents and system staff that without new appropriations the office will have to make pro rata reductions consistent with statute and policy, and it will provide weekly updates if the program remains under strain. The office urged early legislative action to avoid the spring disruption LOSFA officials said could otherwise occur.
