Congress threatens to cut financial aid funding
By Krystle Davis
Posted: 10/6/05, 11:19 PM EST Section: News
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.
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.
