There have been some budget cuts proposed for the 2012 Department of Education by President Obama. Under these budget cuts, $100 billion would be taken from the Federal Pell Grant program along with other programs for higher education.
Currently, over nine million students classified as low income receive grant benefits from the Pell Grant Program. With the budget cuts, students will still be able to receive the current maximum of $5,550 per academic year. All students that qualify for Federal Pell Grants do so through the Free Application for Federal Student Aid or the FAFSA. If a student’s family income information indicates, they may qualify for a Federal Pell Grant. With the new budget there is a possibility of the criteria being changed to be more stringent. This would mean that some students who previously received grants may no longer be eligible.
The proposed budget will eliminate the ability of students to receive two grants within one year. This would cut off the ability for students to receive grants for summer school sessions. Another big element of the newly proposed budget cut would eliminate interest subsidies on federal graduate loans. Currently, interest on Federal Stafford Loans is paid by the government while graduate students are in school. Under the new proposal, the interest on these loans would simply accumulate while students are in school. The loans would not have to be repaid until the student graduates, or drops below a predetermined enrollment status. Congress has not approved the 2012 budget yet.
Via Kentucky Kernel