Committee adopts study recommending FAFSA requirement, data study and statutory fixes for Tuition Grants Commission

The House Government Efficiency and Legislative Oversight Committee on Feb. 3 adopted a subcommittee study of the South Carolina Higher Education Tuition Grants Commission that outlines 15 findings and eight recommendations to modernize the agency and protect student aid.

Subcommittee Chair Tim McGinnis told members the commission administers need‑based tuition grants for South Carolina residents at participating independent colleges and that the agency has historically operated with a very small staff (reported as four employees). "The commission's core purpose is to help offset the cost of attendance," McGinnis said in the presentation.

Why it matters: The study warned that state funding levels have not kept pace with tuition increases and that any cuts or redirection of the commission's three funding sources (the general fund, the education lottery and the Children's Endowment Fund) would immediately affect grant amounts and students who rely on the program.

Findings and recommendations: The subcommittee recommended forming a study committee to explore a statewide longitudinal student data system to track outcomes from K‑12 through postsecondary education; requiring all South Carolina high school seniors to complete the FAFSA with classroom support; considering indexing merit scholarships to inflation; developing outreach to nontraditional students; and updating statutes to clarify allocation of scholarship and grant funds between the Commission on Higher Education and the Tuition Grants Commission. The report also recommended amending state law to remove a permanent felony disqualification for tuition grants and to update an outdated 1962 charter requirement that excludes newer eligible institutions.

Funding details: The presentation said the commission's main funding sources provided about $62,200,000 in FY2024; for the 2023–24 academic year the commission awarded about $55,000,000 to over 12,000 students with a maximum grant of $4,800 per student. The subcommittee noted a 3% reduction in general fund appropriations for the commission in FY2025–26 would total about $847,570 and could affect more than 12,400 students.

Vote and next steps: Representative Tim McGinnis moved to adopt the study; staff called the roll, and the chair reported the committee vote in favor and the study was adopted. The committee recommended the General Assembly consider statutory changes and follow up through the regular legislative process; the full report and supporting documents are available on the committee website.