College Students Face Increasing Student Debt

"Student debt has increased steadily across the country in the last decade, topping $1 trillion for the first time last year, according to education financing experts. Meanwhile, federal student aid loans will face cuts for the foreseeable future, a troublesome combination that could stagnate the economy and highlights the importance of saving for college, experts say," The Anniston Star reports. "Megan McClean, director of policy in federal relations at the National Association of Student Financial Aid Administrators, said the federal budget cuts known as sequestration, which began March 1, will impact federal aid programs starting with the 2013-14 school year. More cuts are scheduled over the next 10 years if Congress makes no changes. McClean said for the upcoming school year, there will be a 5 percent cut in funding for the federal work study program and the federal supplemental educational opportunity grant...Another financial aid program, the teacher education assistance for college and higher education grant, will face a 12.6 percent cut, McClean said. Also, origination fees for direct federal student loans will increase slightly by 1 percent. Still, though the cuts are across the board for the various programs, they will not impact all colleges equally, McClean said. 'It will be different for each institution because every institution gets a different amount,' McClean said of federal aid. 'There are some schools that won't be impacted much and some schools that received pretty significant cuts.'"

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