Colorado's CollegeInvest agency, an organization in charge of state loan forgiveness and scholarship programs, is facing criticism and increased scrutiny from the state's legislature after an audit revealed conflicts of interest and a surprisingly low number of scholarship awards being made by the board. The state legislature will now require the agency to report to them monthly to ensure proper oversight of the state's scholarship and student loan funds.
The audit found that the CollegeInvest Early Achievers Scholarship, a fund that awards high-achieving high school students with college financial aid, had only given out a tiny fraction of the awards it was expected to since it was established in 2005. Students opt into the scholarship program as 7th, 8th or 9th graders and pledge to take pre-college coursework in high school and maintain a GPA of 2.5 or better. The Colorado legislature estimated that the scholarship fund would award about $3.8 million in scholarships per year, but awarded only $91,000 this year. A volunteerism scholarship program and a student loan forgiveness programs managed by CollegeInvest also fell significantly short of goals and projections.
Meanwhile, the fund incurred over $12 million in administrative expenses beyond salaries and benefits for its employees. Reports on the audit note that the program has spent $10 on administrative costs for every $1 in scholarships awarded. The audit also found conflicts of interest with the board awarding funding to other organizations they were connected to and giving out large payments to financial advisors.
CollegeInvest officials say that the program is off to a slow start and that potential conflicts of interest were disclosed and didn't affect board decisions. For now, the state legislature has just asked for increased oversight of the program. But for Colorado students who were expecting to benefit from academic scholarships, community service scholarships, or loan forgiveness programs for which money is in place but funds aren't being awarded in large amounts, any change in these programs cannot come soon enough.