Author: Ryan Strong
Occidental’s Financial Aid Office is concerned that a congressional super committee charged with cutting $1.5 trillion from the federal budget may severely cut funding to the Pell Grant program that many students rely on.
Occidental has already absorbed spending cuts to financial aid programs recently. Additional substantial cuts would significantly affect the college’s ability to continue to meet 100 percent of demonstrated need, according to Financial Aid Director Maureen McRae.
Last year, 496 Occidental students received federal Pell Grants worth a total of $2.03 million.
Occidental contributed an additional $15 million, enabling each of the Pell Grant recipients to only take out about $5,000 in loans on average. But, that could change if the super committee decides to cut spending on Pell Grants by lowering the adjusted grant threshold income levels, according to McRae.
The college already absorbed $650,000 in cuts to federal and state grant programs last year, managing to account for every dollar in support students lost. But, McRae does not think the college could handle another significant cut the same way.
“It’s at the point where something has to give,” McRae said.
Options for absorbing a loss of Pell Grant funding include making more need-aware admissions decisions, no longer meeting full demonstrated need of students, increasing the amount of money students must borrow or rethinking the maximum work hours the college allows in its work-study program.
The administration does not find any of these options palatable, but they may be forced to take one if cuts are made.
“We do not want to be in the position of turning down students just because it costs too much money to fund them,” McRae said.
McRae took issue with some in Congress who doubt the importance of Pell Grants, in some instances calling the program “a form of welfare.”
“If it is a welfare program, it is the most successful one in the history of the country because it moves people into the middle and higher classes very quickly,” McRae said, noting that studies have shown those who go to college earn over $20,000 more per year and over $1 million more in their lifetime than those who don’t attend.
“Why would you cut a program that moves people to higher levels of income, thus extending the tax base?” McRae said.
For now, Occidental is waiting on the super committee to finish its deliberations.
Congressman Xavier Becerra, who represents the district Occidental is in, is on the committee. Upper levels of the administration have talked to the congressman and his staff about the importance of Pell Grants to students and the college, according to McRae.
Students who depend on financial aid worry that any cut to their funding could make it very difficult to continue attending the institution.
“If the school were to dramatically cut my financial aid, I would strongly consider other options for higher education such as going to a cheaper college closer to home to decrease costs,” student Elya Shamskhou (sophomore) said.
As the decision on cuts nears, several organizations are leading the fight to save financial aid. The National Association of Student Financial Aid and Administrators (NASFAA) asks students to write to their senators and representatives. Letter templates are available on NASFAA’s website http://www.nasfaa.org/. Students can also join the Save Student Aid Faceboook campaign to voice their support and advocate for federal financial aid dollars to be preserved from further cuts.
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