How Would Trump's Tax Reform Impact College Students? Pell Grant Funding Could Be In Trouble

"Sens. Bernie Sanders (D-VT) and Ted Cruz (R-TX) duked it out over tax reform at a CNN town hall debate Wednesday night. While the debate devolved at times to slinging personal barbs and arguing over who was interrupting whom, the senators did broach at least one topic that college students present and future are anxious to know: how Trump's tax plan will affect college students and their prospects for a job," according to Bustle.

"In his closing remarks, Sanders blasted Trump's budget for cutting programs that support working and low-income families. Though the plan doesn't cut the Pell grant program completely, it cuts some of its funding that helps college students pay for tuition. Cruz argued earlier that tax cuts are about 'more money in your pockets' while Sanders referred to Trump's tax plan as 'a Robin Hood proposal in reverse.'

Trump's 2018 budget proposal, released in the spring, slashes $3.9 billion out of the Pell grant program's 'rainy day' reserve fund. The House and Senate also put forth funding bills for fiscal year 2018 that propose shaving billions of dollars off from the Pell grant surplus.

'Because of the way the program operates, cutting from the reserves could put the future of the program at risk and harm deserving college students down the road,' wrote Megan McClean Coval for Inside Higher Ed. Coval is the vice president of policy and federal relations for the National Association of Student Financial Aid Administrators. She argued that while the Pell grant program's reserve fund looks like extra money that can be easily redirected, the purpose of the surplus is to protect students and taxpayers should the program face a funding shortfall in times of recession or an increase in college enrollment."

NASFAA's "Headlines" 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.

 

Publication Date: 10/20/2017

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