Massive Cuts Proposed for Student Aid Programs

Friday night, House Republicans released their proposal to keep the government funded after March 4, and cut $100 billion in spending (see Friday's Washington update story for background). The new proposal would have devastating implications for student aid beginning this July 1.  Among the cuts are a reduction of up to $845 to the maximum Pell Grant, and the elimination of SEOG and LEAP (a program that gives states funding to maintain their own state grant programs).  For the nation's poorest students this could add up to a loss of thousands of dollars in  grant aid for the coming academic year.

Republican leaders floated a gentler proposal for budget cuts earlier in the week, but newly-elected conservative members of the House rebelled, saying that the cuts weren't deep enough.

President Obama's budget, that would fund student aid for the 2012-13 academic year, will be released on Monday morning, and could also include education cuts. Once we know the full budget and political landscape on Monday, we will be alerting you to the action steps we need to take to keep our nation's poorest students in school.

In the meantime, NAICU is suggesting that member presidents consult with their financial aid office to learn what these cuts would mean for their institutions' students in the upcoming academic year.  The association has available detailed institution-specific data on existing federal student aid funding for all members upon request.  (Contact geninfo@naicu.edu.)

For more information, please contact:
Sarah Flanagan