Sequestration's effect on Financial Aid

[doorner]

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Has anyone found any concrete info on sequestration's effect on Stafford and Grad+ loans? A lot of the info I am finding is speculation when the Budget Control Act passed in 2011.

I know some fees might go up a bit, but I think those are for Stafford unsubsidized. Can anyone make me a little less anxious about all of this?

 

[Doctor Strange]

On Wednesday's White House meeting, Secretary of Education Arne Duncan said the $86 million cut could hurt college students. "That would mean for the fall as many as 70,000 students would lose access to grants and to work-study opportunities," said Duncan. According to the Department of Education, Federal Pell Grants would be protected. However, funding for federal work study grants would be cut by $49 million and supplemental educational opportunity grants by $37 million.

It doesn't look like federal loan programs will be affected. It's mostly the grants and work study, which med students don't really qualify for or wouldn't be interested in.

http://knightlynews.cos.ucf.edu/?p=16685

EDIT: Found this, also.

Sequestration will also involve an increase in revenues from new student loans. The fees on new Stafford loans will be increased from 1% to 1.1% and the fees on new PLUS loans will be increased from 4% to 4.3%, yielding $91 million in additional revenue.

http://www.fastweb.com/financial-ai...fiscal-cliff-on-federal-student-financial-aid

 

[galaxyx]

It doesn't look like federal loan programs will be affected. It's mostly the grants and work study, which med students don't really qualify for or wouldn't be interested in.

http://knightlynews.cos.ucf.edu/?p=16685

EDIT: Found this, also.



http://www.fastweb.com/financial-ai...fiscal-cliff-on-federal-student-financial-aid

Med students still use work study to get paid for research experiences and sometimes TA'ing.

 

[BamaSlamma]

The federal student loan program operates at a theoretical profit, and for the most part self sustaining. The secretary of education stated in a letter to the senate appropriations committee that the only monies to be effected by the sequester regarding student loans (not grants, etc) is the funding for the administrative overhead of servicing and collecting on loans after a student graduates.