Student loans are already hanging as albatross across the necks of many a students. With the US government’s decision to reduce funding in education, students are going to feel more helpless. Students who have already been awarded grants based on merit will also suffer with changes in their awards.
The Federal Work-Study (FWS) and Supplemental Educational Opportunity Grant (FSEOG) programs have suffered a huge blow with cuts totaling to about 86 million dollars. These programs were popular with students from the low income group.
Most colleges will not be able to help students in the matter and will forward the government cuts in the form of grant cuts to their students. Institutes like the Syracuse University is among those handful of exceptions that will be using their internal funds to help students.
The cuts in education aids is definitely being looked at as the cruelest step in the overall sequester scheme. While student loans are the obvious solution in this situation, the loan origination fees are not student-friendly either. The origination fee is expected to total to 82 million dollars.
This move by the government has already upset students who were sure of their future earlier. It can be assumed that while students and their guardians will not carry out protests, they are frustrated and demoralized. With colleges not being able to help students here, students have to make do with going for loans however difficult they are.