A budget resolution passed by the U.S. House of Representatives on March 29 for the 2013 fiscal year could eventually affect student financial aid. Although the bill will probably be blocked in the Senate, some of its spending cut proposals may be retained in the final budget, and some would have a direct financial impact on students at Sinclair.
The Ryan budget, named after Rep. Paul Ryan, R-Wis., chairman of the house committee on the budget, includes cuts to the federal Pell Grant program that are expected to save more than $4 billion over the first year.
Aside from preventing planned increases in the maximum Pell Grant award (keeping the 2012 maximum of $5,550), the budget introduces a maximum income cap for eligibility and makes students going to school less-than-half-time ineligible for the grants.
In the 2010-11 school year, 14,694 students at Sinclair received a Pell Grant. Any of these students who take fewer than six credits in a semester or whose families make above the income cap (unset, but predicted to be around $45,000) would be ineligible and lose their awards under the new criteria.
The budget will also allow the interest rate for federal Stafford loans to double to 6.8 percent. At Sinclair, 18,389 students receive Stafford loans as part of their financial aid package.
Across the country, 9 million students receive Pell Grants each year, 3.5 million of which are attending community colleges, according to the American Association of Community Colleges. Overall, close to 1 million college students would be expected to lose their grants entirely over the next 10 years under the new criteria, and many more will have their awards reduced.
“Obviously any loss of eligibility of less-than-half-time students would hit community colleges harder than any other sector,” said Jim Hermes, director of government relations at the American Association of Community Colleges.
Community college students are most likely to be working while in school, making them less likely to attend classes full-time or half-time than students at four-year colleges.
“We have a large number of students who are part time, they’re working, they’re helping to support their families, so they go part time,” said Michael Carter, senior vice president for student services and marketing at Sinclair. “There are students who get their degrees one class, one term at a time.”
Sinclair student Heather Judd said that the Pell Grant program makes her education possible and that changes to the grants would only prevent people from getting a good career and giving back to society.
“For the people that it would effect, that’s terrible because it’s hard to go to school and also work,” said Judd. “It helps me tremendously, because I know that there’s no way…I’m a hair stylist and I’m 19, I couldn’t afford to go to school and pay for that. It’ll create poverty, I think.”
If the program reductions go through, this will be the third round of Pell Grant cuts in recent years, said Hermes. Some of these changes will be taking affect on July 1, including reducing the annual income for automatic qualification by $7,000 and reducing the number of years a student can receive a grant from nine years to six years.
Jodi Owens, assistant director of financial aid compliance at Sinclair, said that even with reductions, Sinclair’s tuition is low enough that Pell Grants can cover both tuition and books for many students.
“Any reduction means they’d get less. Whether it’s $500 or $1,000, any amount, when they’re in great need, is going to have an effect,” said Carter.
Sinclair’s financial aid administrators are still examining any impact further changes to the Pell Grant program would have on Sinclair’s students, said Owens.
“My FAFSA says I’m eligible for a Pell Grant for this point in time, but if it changes next year, I won’t be able to use it, and I won’t be able to finish my degree and get a job,” said Courtney Skates, a second-year Early Childhood Education student at Sinclair. “They’re taking cuts from those of us that actually need the money.”
“I think that the most important thing for students to do is to keep telling stories to their reps about how important these supports are,” said Hermes. “I think a lot of times there’s just not the realization that…it’s an important source of money for them and really the difference between going to college or not. As much as we’ve told that story, I think it hasn’t fully sunk in.”
Proposed federal budget cuts would impact Sinclair students
