Budget Cuts Could Hit Needy College Students

By: Associated Press Email
By: Associated Press Email

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March 5, 2013

A coalition of universities and college professionals is asserting the automatic budget cuts could end up costing some students hundreds of dollars a year.

The 77-member Student Aid Alliance says the cost could total as much as $876 a year in new fees, fewer work-study hours and reduced grants for students receiving federal aid. The group is urging students to contact lawmakers and urge them to reverse the cuts.

Some of the fees are modest, such as a $6 fee for new Stafford loans. The biggest cut would be for students who participate in work-study programs. They could see their package reduced by $583 this fall. Among the other cuts: students from extreme poverty could see grants decreased by $236.

Congress did not include popular Pell Grants in the cuts.

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