Uncertainties over US aid vex students

July 22, 2011|By Mary Carmichael, Globe Staff

In Washington yesterday, rumors of a budget deal were swirling, but in Boston, Troy Hurt was too busy to pay much attention. He was on his way to the financial aid office at the University of Massachusetts Boston, trying to find out if he would have a federally funded work-study job for his upcoming junior year. He needed one as part of the $7,000 he was expecting in aid, which was supposed to include a grant from the Pell program.

Had he heard that Republicans had proposed a 45 percent cut in Pell Grants as a way of trimming the national debt? Yes. Had anyone at the UMass aid office explained exactly what that might mean for him? “No one’s talked to me about it at all,’’ he said.

For many college students and administrators, the only financial certainty over the last few months has been the presence of uncertainty.

The debate over the debt ceiling is having “a ripple effect across higher education,’’ said Brandon Busteed, president of Outside the Classroom, whose parent company contracts with colleges to teach students about financial issues.

If the government goes into default, federal funds for everything from student aid to scientific research could temporarily dry up, forcing administrators to shuffle discretionary funds on the fly.

“We do have dollars we could move around on a short-term basis,’’ said Bob Caret, the new president of the UMass system. “But if the spigot gets shut off and there’s no long-term sense that it’s going to come back on - we’re hoping that doesn’t come to pass.’’

Jean Morrison, provost at Boston University, said a short-term loss of research dollars would have little effect, but “over a long enough time period, we’d have to either shrink the research enterprise or pick up some of the costs internally.’’

Assuming that Congress and the White House do reach an agreement before the Aug. 2 deadline, higher education could still feel the brunt of a compromise, especially from cuts to the Pell program, which is clearly in the cross hairs of some members of Congress.

“Students make plans based on Pell Grants,’’ Morrison said. “They’re real dollars that support real people.’’

BU is having trouble assessing the potential impact on students, she added, because the debt negotiations are “dragging on. It’s irritating, frankly.’’

Pell Grants, which provide a maximum of $5,550 and aim to help low-income families, cover just one-third of tuition on average. They are nonetheless the cornerstone of federal financial aid and enable many students to attend college who lack the means otherwise.

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