Arizona House Bill HB2286

Arizona 2025 Regular Session

• Introduced: 1/21/25

Caption

Financial aid; private scholarships; requirements

Impact

The bill amends Title 15 of the Arizona Revised Statutes, updating regulations surrounding financial aid and scholarships in the state. By defining and limiting how financial aid can be adjusted based on private scholarships, the legislation intends to enhance accessibility for students seeking financial assistance. This act is significant as it directly addresses the tension between private funding sources and institutional financial aid policies, potentially leading to an increase in the amount of aid students can receive overall, thereby easing the financial burden of higher education in Arizona.

Summary

House Bill 2286, known as the Arizona Ban on Scholarship Displacement Act of 2025, aims to protect students from losing financial aid due to the receipt of private scholarships. Starting with the 2026-2027 school year, the bill prohibits eligible postsecondary institutions from reducing a student's gift aid when they receive or are designated to receive a private scholarship award. This ensures that private scholarships will not impact federal or state financial aid calculations, thereby supporting students in obtaining the maximum financial assistance necessary for their education.

Contention

While proponents of HB 2286 argue that it promotes fairness and increases financial resources for students, critics raise concerns about the sustainability and financial implications for institutions which could face challenges in budgetary planning. Questions may arise about how these regulations will coexist with scholarship programs funded by universities or government entities, especially considering the differentiation established in the bill regarding allowable aid from private versus institutional sources. The dialogue surrounding this bill indicates potential divisions in the legislative intent of promoting educational equity versus institutional fiscal responsibility.