Report: Sequester Would Reduce Financial Aid at West Michigan Colleges and Universities
"Colleges in West Michigan could be out tens of thousands of dollars in financial aid next school year if across the board federal spending cuts – known as the sequester – take effect Friday," according to a new report from NASFAA, MLive reports. "Disbursements under the Federal Work Study and Supplemental Educational Opportunity Grant programs will shrink unless federal lawmakers broker a deal and avoid the sequester, according to estimates compiled by the National Association of Student Financial Aid Administrators. 'These potential cuts represent broken promises to needy students and families across the country,' NASFAA President Justin Draeger said in a statement. 'By the time the sequester cuts are implemented most colleges will have provided students with financial aid awards, which will then have to be reduced, leaving families scrambling to fill the gap.' ... Some colleges and universities, such as Grand Valley State University, won’t see its disbursements for either the Federal Work-Study or Supplemental Educational Opportunity Grant change. That’s because the sequester will only impact the 'fair share' portion of an institution’s grant disbursement, not its base award, said Megan McClean, director of policy and federal relations at NSFAA. She said the 'fair share' portion is additional dollars that some institutions receive based upon financial need. 'Institutions that did not see any change would be institutions that were just receiving the base amount,' McClean said."
NASFAA's "Financial Aid in the News" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.