In the midst of potential cuts to need-based federal student grants, merit-based scholarships are on the rise at Iowa State.

Need-based aid is threatened by a proposal in Congress to cut more than $9 billion from student aid, but merit-based aid is mandated by state law.

Roberta Johnson, director of financial aid, said she believes money to cover the decrease will likely come from scholarships. Only so much can come from merit-based scholarships, however.

“The Board of Regents mandates that at least 15 percent of tuition revenue be set aside as merit-based aid,” she said.

According to Daily staff reports, in-state tuition has risen 80 percent since 2000, with a rise of approximately 60 percent for out-of-state tuition.

Despite the cut in need-based federal financial programs, money through merit scholarships has been increasing.

Trends are positively indicating more money will be coming through, Johnson said, because of an increase in revenue from scholarship donors and ISU Foundation initiatives. Last year, over $20 million more in financial aid was awarded to students than in the previous year. The university awarded a total of more than $269 million in scholarships, grants, loans and employment in 2003-2004.

Data from the ISU Factbook indicated in the 2003-2004 school year, Iowa State awarded 12,086 institutional need-based scholarships averaging $1,735 each. That same year, Iowa State gave out 30,300 loans averaging $4,680, an increase of more than $400 from the previous year.

ActivUs, an ISU student political activism group which is a part of the Public Interest Research Group, said the cuts will still damage students’ pocketbooks. It has labeled the aid cut bill, HR 609, a “raid on student aid,” and said the cut from financial aid programs will be $9 billion.

“This [proposed] cut in student aid is absolutely unacceptable,” said Katherine Lundberg, freshman in political science and member of ActivUs.

The proposed HR 609, the College Access and Opportunity Act, which contains increases in interest rates for several federal student aid programs, has many on campus discussing other options to fund education.

The bill will be voted by the House in November.

Cory McDermott, junior in construction engineering, said further decreases to financial aid would complicate his life.

“I’ve taken out loans, and I already tutor when I’m not in class,” McDermott said.

He said his schedule is filled with classes, clubs and work. If he is affected by the proposed increases in the interest rate, McDermott said he would clear out more time in his schedule to balance his budget.

“I suppose I could work more hours. It’d be hard to do it since I’m involved in five clubs already,” he said.

Doug Borkowski, financial counselor for the Financial Counseling Clinic, said the proposed changes could be cause for students to re-evaluate their situations.

“Students look at this and say, ‘I need to be borrowing,'” Borkowski said. “They need to know there might be a limit to how much they can borrow and still be financially successful after they graduate.”

He said students can understand this limit by looking at what the earning potential of their future occupations will be and by considering how many hours they could work while remaining academically successful.