Congress to discuss cuts in federal financial aid

By Gus Bode

Factoid:To view other SIUC scholarship options, visit the financial aid Web site at www.siu.edu/~fao/.

Students could have to look for more alternative funding for school as the federal budget calls for a plan to decrease federal spending by $50 billion, with 28.6 percent possibly coming out of student loan programs.

In December, Congress will discuss legislation to keep the Pell Grant maximum at $4,050 for the fourth consecutive year and to cut almost $15 billion from federal student loan programs.

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In 2004, more than 6,174 SIUC students received the federal Pell Grant and more than 13,000 received federal student loans. Last year about 77 percent of SIUC students received a portion of the $189 million available financial aid.

Uday Desai, professor in political science, said such legislation shows that higher education has become a lesser priority under the current administration.

“I really don’t think this is a surprise at all,” Desai said.

He said the figures could be misleading because there is a decline in terms of real support even when the dollar amount stays the same as tuition rises. For example, tuition at SIUC has risen by more than $2,000 a year in the past five years.

The Student Aid Alliance, a financial aid lobbyist group, sent a letter sent to the Senate Appropriations Committee expressing concern over discussions of cutting funding.

“Whenever the student aid programs produce savings, Congress takes them to spend on other areas of government, whether deficit reduction, hurricane relief or other education and health programs,” stated the letter signed by David Ward and David Warren, co-chairs for the group. “Congress must stop the raid on student aid!”

President Bush has requested that the Pell Grant maximum be raised by $50-$100, however, so far that request has been denied.

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“It would be nice, but it’s not enough,” said Billie Jo Hamilton, director of the SIUC Financial Aid Office.

The financial aid talks will take place along with discussion about the Higher Education Act, which Congress will also consider extending or revising in December. The act is allows the federal government to implement federal aid programs and other education issues and is reauthorized every six years. The last one expired in 2004 and was extended by one year.

Unfortunately, Hamilton said, she believes legislators are nowhere near the end of the process.

She said the process is a vicious cycle. When the state cuts funding, the University is forced to increase their tuition, which in turn forces student to require more and more financial aid.

“My guess is that we’ll continue to see students borrowing more,” Hamilton said.

In 2005, SIUC was ranked 15th in the nation by U.S. News and World Report for students who graduate with the least amount of debt.

Hamilton suggests that students be aggressive in seeking private scholarships to subsidize their needs that can’t be met by financial aid.

“That’s something they can start looking at over the holidays,” Hamilton said.

Filing the FAFSA form by the April 1 priority deadline will also increase the chances for receiving more financial aid. Next year’s forms can be filed starting Jan.1, Hamilton said the available money is not on a first-come, first-serve basis, but rather on a student’s need.

Reporter Laura Teegarden can be reached at [email protected]

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