Latest news with #MelanieStorey
Time of India
25-06-2025
- Business
- Time of India
International students in US could bear the brunt as universities face steep federal aid cuts
As federal funding cuts and policy changes loom, US colleges are preparing for major shifts in how they offer financial aid to local and international students . Aid officials across the country are warning that institutional aid budgets may shrink, raising out-of-pocket costs and threatening access for many students, Times Higher Education reports. The warning comes as financial aid administrators gather in Anaheim, California, for the annual National Association of Student Financial Aid Administrators (NASFAA) conference. The atmosphere at the event is marked by uncertainty. Lawmakers are moving ahead with a proposal to overhaul federal student aid policies, including cuts to Pell Grants, loan caps for graduate students, and the elimination of programs like TRIO that support college access. 'Financial aid budgets thrive on predictability,' said NASFAA president Melanie Storey. 'Right now, that's in short supply.' She added that students 'will be expected to pay more for college' if the cuts move forward. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 23.7% Returns in last 5 years with Shriram Life's ULIP Shriram Life Insurance Undo Financial aid officers from both public and private colleges told Inside Higher Ed that they are already planning for possible reductions. At some institutions, offers made to incoming students for the fall are now uncertain. One senior official at a public research university, speaking anonymously to Times Higher Education, said, 'I think some vulnerable student populations are really going to suffer, or may not be able to attend at all.' (Join our ETNRI WhatsApp channel for all the latest updates) Colleges are not just facing aid cuts. They are also dealing with losses in research funding and possible reductions in state support. In Maine, a free community college program may end after just three years due to budget constraints. Across states, similar aid initiatives could face rollbacks. Live Events MORE STORIES FOR YOU ✕ What are 'digital undertakers' and why you might need one before a US visa application Indian students bare their digital souls to win US visas Social media scans for student visas: The platforms US wants to monitor, and what they're looking for « Back to recommendation stories I don't want to see these stories because They are not relevant to me They disrupt the reading flow Others SUBMIT In Washington, Congress is also considering raising the tax on large college endowments from 1.4% to 8%. Anne Harris, president of Grinnell College, said that the new tax would put pressure on even well-funded schools. 'We will try to keep our no-loan promise, but the strain on aid budgets will increase,' she said. Experts agree that financial aid offices now play a critical role in institutional planning. Some colleges may shift enrolment strategies, such as admitting more out-of-state or international students, to increase revenue. However, that approach is also complicated by tighter immigration policies. For students, this could mean smaller aid packages or the need to turn to private loans.
Yahoo
02-06-2025
- Business
- Yahoo
FY26 budget plan would slash maximum Pell Grant by nearly a quarter
This story was originally published on Higher Ed Dive. To receive daily news and insights, subscribe to our free daily Higher Ed Dive newsletter. Maximum Pell Grants would be cut by nearly $1,700, or about 23%, under the U.S. Department of Education's fleshed-out fiscal 2026 budget request released on Friday. The new maximum award would be $5,710 for the 2026-27 award year. The number of Pell Grant awards would fall by 111,000 from fiscal 2025 levels and aid available to students would decrease by $9.3 billion, to $27.7 billion, according to the budget document. Additionally, the proposal would cut all $1.6 billion from a grant program for low-income students supplementing Pell. The department also outlined its intention to seek a reversal of who pays the lion's share of student wages under a drastically reduced Federal Work-Study program. As requested in President Donald Trump's "skinny budget" last month, the program would be cut by nearly $1 billion, leaving employers to pick up more of the tab. Early this year, warning signs about the financial stability of the Pell program began flashing. In January, the Congressional Budget Office issued a report projecting a $2.7 billion deficit for fiscal 2025 for the program that helps lower-income students attend college. At the time, the nonprofit advocacy group Institute for College Access & Success warned that the shortfall could mean cuts for fiscal 2026 on a scale not seen since the Great Recession. The Committee for a Responsible Federal Budget followed up with projections of persistent shortfalls in the program over the next decade and said Pell Grants would need increased appropriations, smaller awards, tighter eligibility or some combination of those to stabilize the program. A January report from the Urban Institute attributed the Pell shortfalls to a combination of formula changes expanding eligibility and increases in undergraduate student enrollment in recent years. In its budget document, the Education Department blamed the funding shortfalls on 'Congressional inaction' and 'increasing instances of fraud.' The fraud allegations were tied to an Education Department announcement last week that it had found almost $90 million in student aid payments to ineligible recipients, including more than $30 million to people listed as dead in a Social Security Administration index. The department, in its budget detail document, said the Pell Grants program is the 'foundation of low- and moderate- income students' financial aid package and helps ensure access to postsecondary education.' But some higher education groups worry the administration's budget plans would reduce access. 'The President's budget slashes student financial aid, effectively reducing college accessibility and affordability at a time when many families are already struggling with the daily cost of living,' Melanie Storey, president and CEO of National Association of Student Financial Aid Administrators, said in a statement Monday. House Republicans last month passed a budget reconciliation bill backed by President Donald Trump that — among many other provisions — would alter the Pell Grant eligibility formula and increase the course hours required for full-time student designation from 24 to 30 per academic year needed for maximum grant awards. The American Council on Education called the proposed Pell changes 'crippling' and warned that some 700,000 students could lose eligibility under the bill. The measure is now under consideration in the Senate. The administration's proposed cuts to Federal Work-Study would also radically alter that program by slashing most of its funding. The fiscal 2026 budget document calls for working with Congress on changing the program to serve 'the most low-income students' and incorporate an 'appropriate split between Federal and employer wage subsidy.' Specifically, the department aims to flip the ratio of contributions from the federal government and employers. Where now the government covers up to 75% of wages and employers put in 25%, the Education Department aims to have employers paying 75% in the future. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
