Congress may cut billions in student aid

By Nicole LaPrade

A congressional proposal to cut $14.5 billion in federal student aid over the next five years has the university worried that many students won't be able to pay for college.

The cuts would be made by charging student borrowers higher fees, raising student loan interest rate caps and raising rates on consolidation loans, according to Associate Vice Provost for Enrollment Management Richard Toomey.

The House Education and Workforce Committee approved the Republican proposal on Wednesday, amid a growing federal deficit from the war in Iraq and recent disaster relief. Congress plans to cut $50 billion in total federal spending.

The financial aid office at Santa Clara is joining efforts led by the Student Aid Alliance, an organization of non-profit groups and associations, to stop the bill from passing.

"The loans would be even more expensive," Toomey said. That's what started the current campaign, "Stop the Raid on Student Aid."

In 2003-04, nearly 10 million students received federal aid, with an average award of around $6,000, according to the Student Aid Alliance.

Others in the financial aid office stressed the importance of spreading awareness of the proposed cuts.

"There's definitely a need to get the word out, to spread the word, because if the politicians don't hear how necessary it is that we get this funding, or keep this funding, then what's stopping them from taking it away and using it toward something else that they feel is more important at the time?" Direct Loan Manager Trista San Agustin said.

Tomey said that students should "begin to pay attention to this. We have been pretty apathetic in the past, and come along after things have happened and complained about them. Now is an opportunity to let their elected officials know that they're interested and concerned about this issue and that they're paying attention."

San Agustin also warned that the cuts could have a "tremendous effect" on diversity in the student body. "There are students out there who their dream has been to come to Santa Clara, they have the criteria that we are asking for, and financially it just wouldn't be possible," she said.

Senior Emily Johnson worried that the lack of available funds could discourage students from going to college.

"There shouldn't be a penalty for wanting to learn," she said. "They're making it harder and less accessible for people of a certain class to go to school."

Federal student aid is need-based, where the amount of aid a student received is calculated based on family and individual income and the cost of education.

"These changes will result in the typical student paying $5,800 more for college loans -- keep in mind, this typical student is already $17,500 in debt. It is simply wrong to force our nation's students, most often youth, and their families to shoulder this burden," Cyndy Littlefield, the Association of Jesuit Colleges and Universities' representative in Washington, D.C., said in a letter to Toomey and administrators of other universities.

According to San Agustin, the Perkins Loan Program could also be cut or eliminated.

Federal grant, loan and work-study programs account for two-thirds of all available student aid. In the 2003-04 academic year, that was $75.2 billion was out of a total $115.7 billion.

Grants from institutions and private sources accounted for another 20 percent with $23.3 billion, and state grants provided 5 percent with $6 billion.

"When you look at where we as citizens want this country to go -- the jobs that are out there are demanding degrees, not just four year degrees but beyond that. So, if the jobs that are out there are requiring those degrees, but we're decreasing the amount of aid that we're allowing to the students trying to get an education, it doesn't make sense. We're limiting the possibilities for these students that are up and coming," San Agustin said.

Students can call (800) 574-4AID to voice opposition to the proposed cuts.

More information can be found on the Santa Clara financial aid office Web site at www.scu.edu/financialaid, or at www.studentalliance.org.

The Associated Press contributed to this report. Contact Nicole LaPrade at (408) 554-4546 or at nlaprade@scu.edu.