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Congress threatens to cut financial aid funding

Published: Thursday, October 6, 2005

Updated: Sunday, March 7, 2010 15:03

As the cost of college tuition increases each year, the federal government prepares to vote on proposals that could make repaying loans more expensive for students.

Congress is in the process of reauthorizing, or reviewing, the Higher Education Act, a law that regulates most student aid programs at colleges and universities.

In a few weeks, the House of Representatives will vote on a bill that could cut $9 billion from student loan programs, reducing benefits for student borrowers and making loan consolidation more expensive for students.

Since approximately 70 percent of Syracuse University undergraduates receive need-based financial aid, according to the SU Web site, these cuts could directly affect much of the student body.

The proposed adjustments are part of budget reconciliation, a process that allows Congress to quickly pass tax cuts and other measures in order to reduce the budget deficit.

Christopher Walsh, dean of financial aid and scholarship programs at SU, said the government's competing priorities, such as the Hurricane Katrina disaster relief efforts and the War in Iraq, are part of the reason why student financial aid programs receive less than the desired level of funding.

However, he said the cuts are in technical areas and do not necessarily lessen the aid to students.

"I don't think there's going to be a negative impact on students," Walsh said.

The most disappointing aspect of the new proposals is that there are no new programs or substantial increases to financial aid, Walsh said.

"It does not keep pace with the rising cost of tuition," he said.

The United States Student Association, a Washington, D.C.-based group that defends student interests, strongly opposes the proposed changes and has been working to unite students against these bills.

When USSA organized a national call-in day on Sept. 20, more than 1,600 calls were made to representatives in Congress, asking them to vote against the reconciliation measures, said Jasmine Harris, legislative director of USSA.

USSA urges students to participate in its next call-in day on Oct. 19.

"There's strong pressure and strong intent to pass these bills, and that's why we're trying to mobilize students," Harris said. "It's going to take a united student voice to stop these bills from passing."

One of the proposed changes to the Higher Education Act is a $500 increase in Pell grants over the next five years, Walsh said.

"Over the next five years, the cost of education will probably go up thousands of dollars. It's just not generous enough," he said.

For students who rely on financial aid to subsidize their education, the rising cost of tuition can become daunting.

"Financial aid - that is the reason I'm here at this school," said Brittney Parkinson, a sophomore civil engineering major. "I wouldn't be here without financial aid. It pains me every day to think about the cost of tuition. It just keeps going up."

Heather Shearer, a graduate student in the writing program, said she disapproves of the cost of college tuition throughout the country.

"In the U.S. in general, it is too high," Shearer said. "People have to go into debt to get an education. We're the only industrialized nation where that's the case. It's embarrassing."

The SU Office of Financial Aid and Scholarships works in conjunction with the SU Office of Government Relations, the National Association of Student Financial Aid Administrators, and the New York State Higher Education Services Corporation to try to make college more affordable for students, Walsh said.

"We're always trying to encourage the government to make additional funding available for students," he said.

Still, college loan debt is a reality many students and graduates face. The average graduate earns $27,000 out of college with loans totaling more than eight percent of their monthly income, Harris said. This leaves 39 percent of graduates with unmanageable debt, she said.

Shear said she has amassed so much student loan debt that she could have bought "a nice house" in Syracuse by now, while Parkinson tries to avoid thoughts of future debt altogether.

"I try not to think about (repaying loans) yet," Parkinson said. "I'm in school for a reason: to get a good job. So, hopefully I will be in a position to pay them off."

Harris said college students should get involved and let their congressmen know they oppose cuts to higher education.

"We shouldn't be attempting to balance the budget on the backs of students," she said.

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