NASFAA Provides School-by-School Estimates of Potential Sequester Cuts: How Will Your Local Students be Harmed?
FOR IMMEDIATE RELEASE
Contact: Beth Maglione
VP of Communications
Financial aid administrators estimate campus-based reductions for both the Federal Work Study and Federal Supplemental Educational Opportunity Grant programs
WASHINGTON, DC, FEB. 27, 2013 -- Student financial aid administrators, college presidents, and consumers have all seen recent reports about the impact of March 1 across-the-board spending cuts (e.g. “sequestration”) on key federal programs that assist students and families in paying for college. To provide some context on what these cuts might mean in real dollars, NASFAA—the association representing nearly 20,000 financial aid professionals from all sectors of higher education—has created a PDF spreadsheet that estimates campus-based reductions for more than 4,000 schools across the country if the looming sequester is enacted this Friday.
"These potential cuts represent broken promises to needy students and families across the country," said NASFAA President Justin Draeger. "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."
NASFAA used the U.S. Department of Education's institutional-level formula elements for the 2013-14 tentative campus-based allocations to create these estimates, which are listed alphabetically by school and take into account possible cuts to both the Federal Work Study and Federal Supplemental Educational Opportunity Grant programs. Take a look at the chart and see if your local college or university has program funds on the chopping block!
- About the Federal Work Study Program (FWS). FWS provides funds for part-time employment to help needy students finance the costs of postsecondary education. Students can receive FWS funds at approximately 3,400 participating postsecondary institutions. Hourly wages must not be less than the federal minimum wage.
- About the Federal Supplemental Educational Opportunity Grant (FSEOG) Program. FSEOG provides need- based grants to help low-income undergraduate students finance the costs of postsecondary education. Students can receive these grants at any one of approximately 3,800 participating postsecondary institutions. When making FSEOG awards, the institution must give priority to those students with “exceptional need” (those with the lowest Expected Family Contributions, or EFCs, at the institution) and those who are also Federal Pell Grant recipients.
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The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents nearly 20,000 financial aid professionals at 2,800 colleges, universities, and career schools across the country. Each year, financial aid professionals help more than 16 million students receive funding for post-secondary education. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit www.nasfaa.org.