Federal Student Aid Cuts Loom

By Naushaba Khan

With federal budget cuts around the corner, the U.S. Department of Education is prepared to cut about $4 billion from their budget, signifying a potentially significant decrease in funding for the Office of Postsecondary Education and the Office of Federal Student Aid. 

This reduction will take place if the "sequester" automatic spending cuts go into effect as of March1. About $85 billion is on stake for this year.

How the cuts in funding may directly apply to Santa Clara students is still unknown, but it is known that sequestration would be a five percent reduction to Title IV allocation. This means there would be a direct affect on college work-study and the supplemental grant programs.

"Approximately 140 Santa Clara University students may see about a $400 average reduction to their financial aid," said Jeffery S. Roush, the associate director of the Financial Aid Office. "Santa Clara University has not made any decision regarding sequestration because we are unsure of what true impact it will have on our students."

All undergraduate students are required to submit their FAFSA application by March 2. If the sequestration goes into effect, the funding notification received from the university and federal offices may not be completely accurate until all final decisions are made by the Department of Education, the federal offices, and Santa Clara. The university decides the allocation of aid within its own perimeter as it remains a private institution. But this does not mean that the university will go on unaffected.

"Financial aid is extremely important, especially as the cost of education continues to rise. As a student relying on financial aid in order to attend college, $400 is incredibly significant in the grand scheme of things," said freshman Kelsey Rondini. "Education should be a top priority, and we as a society cannot afford to cut any spending relating to education and the furthering of future generations."

For the 2012-2013 year, Roush indicated that 4,222 undergraduate students are dependent on receiving financial aid to afford an education at the University.

"Receiving less funding would definitely affect my education," said freshman Dominique Terry. "I need every penny of financial aid I can get. I know a lot of my fellow students feel the same way. Almost everyone I know is on scholarship or had to take out student loans. It would be a great struggle for me and others if the aid was severely decreased."

The Fiscal Cliff debates regarding the cut of sequester automatic spending continue. As Roush mentioned, the university will not address the situation until the true impact of sequestration is known.

Contact Naushaba Khan at nakhan@scu.edu or call (408) 554-4852.