Student Aid

Archive Report

Pending Cutbacks

U.S. Aid in Jeopardy to 790,000 Students

Not since 1981—when the Reagan administration first proposed drastic cuts in aid to higher education—have college students and their parents been so uncertain about the availability of federal funds for the fall. Barring a congressional bailout, which remains at least a slim possibility, about 790,000 students will see their federal grants eliminated or reduced because of a shortfall in the Education Department's budget. The Gramm-Rudman-Hollings act, which requires progressive cuts in the federal deficit, contributed to the current problem and could make matters even worse in coming years.

Heightened uncertainty about federal aid conies at a time when college costs have risen at about twice the rate of inflation for four consecutive years, with only a moderate decline ...

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