Before and During College: How The President’s Budget Proposals Would Affect Your Grants, Scholarships, and Work-Study

President Trump recently released his Fiscal Year (FY) 2021 budget proposals for federal student financial aid. Last Wednesday, we assessed their possible impact on federal student loans. Today, we focus on how they’d affect grants and work-study jobs for financially needy students.

Pell Grant: The administration promises to keep the Pell Grant program fully funded and financially stable, while raising the maximum Pell award from $6,195 to $6,345. But it wants to cut Pell’s appropriation by $134 million while awarding 252,000 more grants. It would extend Pell funds to 3 new groups: those in what it calls “high-quality” short-term training programs leading to certificates and licenses, convicts taking courses during their last 5 years in prison, and Iraq-Afghanistan Service Grant recipients. Give all this, fulfilling the administration’s promises will be impossible, which could cause frozen or reduced Pell awards after FY 2021 even as college costs rise.

Federal Supplemental Educational Opportunity Grant (FSEOG): The neediest of financially needy undergraduates are now receiving 1.8 million FSEOGs worth $1.2 billion. But the proposed budget would eliminate FSEOG funding, denying much-needed federal funds to exceptionally needy students. A side-effect would be fewer grants and scholarships for others as postsecondary schools, under pressure to be affordable to all qualified applicants regardless of their economic circumstances, would have to divert other grants and scholarships to students currently getting FSEOGs.

Federal Work-Study Program (FWS): Today, FWS provides part-time jobs to needy graduate, professional, and undergraduate students. Washington covers 75% of their wages. They work mostly on-campus and their jobs are often related to student majors. FWS also supports off-campus public interest jobs with government agencies and nonprofits. Mr. Trump would reduce FWS appropriation by 58%. He’d kick graduate and professional students out of the program and extend it’s payroll subsidy to for-profit employers providing “career-oriented” jobs. He’d also place greater emphasis on the numbers of Pell Grant recipients at FWS schools when allocating FWS funds to schools — further decreasing FWS jobs at some institutions and increasing them at others.

Overall: Education Secretary Betsy DeVos said “The budget proposal is about one thing — putting students and their needs above all else.” This is misleading. In reality, the Trump proposals would slash funds for student grants, loans, and work-study by 81%.

There’s so much opposition to President Trump’s student aid budget proposals that one higher education publication has pronounced them “DOA.” But you can’t write them off. The national debt is at record levels, putting pressure on Congress to downsize federal spending. So all or some of these proposals could end up being attached to “must-pass” legislation.

So if you want affordable postsecondary education, it’s essential you tell your U.S. Senator and House member what you think about these proposals.

With 42 years experience in postsecondary student finance, College Affordability Solutions can help you develop strategies to use before, during, and after college to help upgrade your plans for keeping learning after high school within your means. Contact us at (512) 366-5354 or collegeafford@gmail.com to arrange a free consultation.

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