New Education Budget Cuts Mean Less For Low-Income College Students

March 9, 2011 by · 1 Comment 

By Kimmy Ryan

Proposed Budget Cuts from on Vimeo.

President Obama is proposing to cut 100 billion dollars in Pell Grants and other federal education programs.

Pell Grants help more than nine million low-income students each year. With a large increase in recipients in the past few years, the Pell Grant Program faces a $20 billion funding shortfall.

The proposed cuts means fewer students will receive the grants, but those who are eligible will receive the maximum award of $5,500 per school year. Students will no longer be able to receive two grants in one year, both a summer school and school year grant. Savings from these cuts would be $60 billion in ten years.

Graduate and professional school students will also face changes. The graduate student debt burden will increase due to changes in loan subsidies. These cuts will save the federal goverment $29 billion in ten years.

Students will be greatly affected by these budget cuts: college tuitions are rising across the United States and need-based grants are being cut.