The D.C. department of human resources has issued [WORDS ILLEGIBLE] in scholarship checks to about 356 low-income college students, officials of the agency [TEXT ILLEIGBLE] as state student intentive grants, the [WORDS ILLEGIBLE] provide aid to $1.5m a solid year to each eligible need student.

The program is two years old. For the second year, DHR [WORD ILLEGIBLE] the scholarship checks. Students who applied for the aid in September were receiving checks last week, according to Jacqueline Johnson, DHR deputy director for state agency affairs.

Grants approved by DHR in January, 1976, were not stand avaliable to students until last June. As a result, the city had to return about $67,000 of the total budget for the program to the federal government. This grants are 50 per cent federally funded. The other comes half from city funds.

k"We don't expect to be this late again," Johnson predicted. She explained previously that the grants were delayed by problems in another education aid program, the guaranteed student loan program, managed by DHR.

The loans are provided to city college students by local banks. Repayment is guaranteed by the District. It was disclosed last year that more than 30 per cent of the loans borrowers have defaulted and consequently new applications to the program had to be denied.

Johnson said the anticipated October issuance of this school year's incentive scholarships was delayed by attempts to include in the program some of the students who were denied loans.

For the 1976-77 school year, DHR has approved 404 applications for a total of $512,370, although some of the checks have not been issued, officials said.

The approved grants make up about 80 per cent of this year's overall scholarship budget, Johnson said. The remaining 20 per cent has been reserved for students seeking funds for summer school.