ETSU leaders warn of federal aid changes and potential Tennessee Lottery Scholarship shortfall
September 12, 2026 | East Tennessee State University, Public Universities, School Districts, Tennessee
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University officials briefed the board on federal and state financial-aid changes that could reduce aid for some students and on actions ETSU is taking to notify and assist affected students.
Doctor Heather Levesque and colleagues explained the "schedule of reduction," a change that links a student's annual aid eligibility more directly to the credit hours taken across terms. Levesque said the change can cause students who drop below a full‑time threshold in one term to have their future aid prorated. She summarized outreach steps: a dedicated "big beautiful bill" webpage, targeted emails to known Parent PLUS and Pell recipients, campus signage and a registration pop-up that warns students before they add or drop classes.
The presenters also noted federal changes to Parent PLUS and Grad PLUS loans — about 150 students at ETSU have taken Parent PLUS loans — and said new graduate students will not be eligible for Grad PLUS going forward. The financial-aid team is monitoring impacts and working with advisors to help students plan course loads.
The board was also warned of a looming shortfall in the Tennessee Education Lottery Scholarship (TELS). Trustees were shown state-level data: lottery revenues are down (presenters cited a $90,000,000 revenue decline in 2025) while enrollments and award counts have risen; presenters said about 82% of ETSU freshmen receive a TELS award and that cuts or policy changes could reduce the award's access value.
"We wanted to bring visibility to a potential shortfall in funding in the Tennessee Educational Lottery Scholarship Program," a presenter told the board. "If those revenues don't increase, the state is considering various cuts — but all of those cuts have tradeoffs."
Doctor Heather Levesque and colleagues explained the "schedule of reduction," a change that links a student's annual aid eligibility more directly to the credit hours taken across terms. Levesque said the change can cause students who drop below a full‑time threshold in one term to have their future aid prorated. She summarized outreach steps: a dedicated "big beautiful bill" webpage, targeted emails to known Parent PLUS and Pell recipients, campus signage and a registration pop-up that warns students before they add or drop classes.
The presenters also noted federal changes to Parent PLUS and Grad PLUS loans — about 150 students at ETSU have taken Parent PLUS loans — and said new graduate students will not be eligible for Grad PLUS going forward. The financial-aid team is monitoring impacts and working with advisors to help students plan course loads.
The board was also warned of a looming shortfall in the Tennessee Education Lottery Scholarship (TELS). Trustees were shown state-level data: lottery revenues are down (presenters cited a $90,000,000 revenue decline in 2025) while enrollments and award counts have risen; presenters said about 82% of ETSU freshmen receive a TELS award and that cuts or policy changes could reduce the award's access value.
"We wanted to bring visibility to a potential shortfall in funding in the Tennessee Educational Lottery Scholarship Program," a presenter told the board. "If those revenues don't increase, the state is considering various cuts — but all of those cuts have tradeoffs."
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