Governor Jennifer Granholm has proposed a new scholarship program that could cause Michigan's private universities to lose $45 million in financial aid scholarships. Meanwhile, the program would give millions of dollars in aid to public universities.

The program, called the Michigan Opportunity Scholarship, would issue financial aid to students across the board based on federal standards of financial need, income, school costs, and other components. Granholm said this program would provide aid to students who need it the most.

The proposal would combine five existing scholarship programs into one pooled fund of $112 million for both public and private universities. It would combine the current programs of tuition grants for private universities, state competitive scholarship, work-study, part-time student aid, and opportunity grants for public universities.

The way in which the state distributes financial aid should be closely looked at before approval of this new proposal, said Cynthia Wilbanks, vice president for government relations at the University. "Public dollars should follow students who have financial need," Wilbanks added.

Mike Boulus, executive director of the Presidents Council of State Universities of Michigan, said he feels similarly. "These are tax dollars and they should be based on the public good," Boulus said.

For the University's purposes, Wilbanks said she hopes that a decision will come on the proposal soon. "It would help to know what the exact appropriations would be," she said.

The biggest loss for private universities will be the dissolution of the tuition grant program, which gives students at private universities $2,300 a year for up to five years. Now, these students will be in equal competition with students at public universities.

Currently, 65 percent of state funded scholarship aid goes to private universities. With the new program, they will receive approximately only 25 percent.

Edward Blews, president of the Association of Independent Colleges and Universities of Michigan, said "We oppose the proposal because it is very unfair to Michigan students who choose (to attend a private university). We support the preservation of the current need-based financial aid programs that have been in place for nearly 40 years."

Private universities cost an average $7,000 more in tuition than public schools. This provides enough reason for private universities to receive more funding, Blews said. Also, public universities receive around $1.55 billion in other areas of funding in areas that private colleges do not, Blews added.

"It would be very challenging for us because our students really rely on those funds to help finance their educations and the college tries very hard to... assist the students, but we don't have the resources to make up that amount (ourselves) for our students," said Associate Director of Financial Aid at Albion College, Skip Zabel.

So far the proposal has approval from the state House, but awaits a vote from the Senate. A decision on the proposal is expected sometime this summer.