DATE:  July 6, 2005

TO: Governor Schweitzer, Board of Regents, Superintendent McCulloch, Board of Public Education, Steve Melloy

FROM: Sheila M. Stearns, Commissioner of Higher Education

RE: HB 435 The Governor's Postsecondary Scholarship Program - Item Number 128-109-R0705

At the upcoming July 14th, 2005, Board of Regents Meeting in Great Falls, Item number 128-109-R0705 will come before the Board for approval. This item is a request from my office, and specifically the Montana Guaranteed Student Loan Program, for the Board to approve the scholarship awards for the 2006 academic year. Timing and the requirements of HB 435 require us to handle the first year's disbursements in a unique manner.

I have asked the Director of the Montana Guaranteed Student Loan Program, Bruce Marks, to provide an explanation of Item number 128-109-R0705 in advance of the meeting, and the interaction thus far with the Governor's Advisory Council on this proposal. Feel free to contact either Bruce or me if you have any questions or concerns regarding the 2006 academic year disbursements. His explanation is attached.