Students Feel Burn of Sequester Cuts in Fee Hikes on Federal Loans
"The effects of the sequester have spread to the hallowed halls of education. Both graduate students and the parents of undergrads have been quietly receiving letters from the federal Department of Education," Fox News reports. "The letters say the fees on their Direct PLUS loans from the government are being raised as a direct result of the automatic budget cuts that kicked in this month because Congress and the White House couldn't come to a fiscal agreement. … While the increase is slight, many families will still have to tighten belts on already strained budgets, and some feel that they are being punished for a stalemate between Democrats and Republicans in Washington. … “The cut will come from the overall pool of funding, so many schools will receive less funding and many of them are going to be given a smaller piece of the pot,” Megan [McClean], director of policy and federal relations for the National Association of Student Financial Aid Administrators, told FoxNews.com. “Schools are sending out award letters to students saying they have been accepted, but the number will be lower by the time they start."
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