Ohio: College Students Face Higher Fees, Reduction in Awards With Federal Cutbacks
"College students are among those who will feel the brunt of sweeping federal spending cuts that kicked in Friday. Tens of thousands of Akron-area students likely will lose money or federally funded jobs or pay more for their loans," Ohio.com reports. "The largest number will be affected in an increase in origination fees for federal subsidized and unsubsidized loans — the backbone of many students’ financial aid arrangements. While the amount individually will be small, the net effect for all students at any given campus could be large. The fee, which is charged to process the loan, will grow from 1 percent to 1.053 percent. ... Megan McClean, managing director of policy and federal relations at the National Association of Student Financial Aid Administrators, said that the complex allocation formula includes a base amount and sometimes extra allocations for some institutions. “It won’t necessarily affect you at a 5.1 percent amount,” McClean said."
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