Wiseman: Looming cuts threaten student financial aid

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Students take notes at Northern Illinois University in DeKalb. Cutbacks in student aid could have students across the country scrambling. | AP photo

Updated: March 1, 2012 8:19AM

The economic downturn has proved to be an incredibly challenging time for our nation, resulting in marked declines in job growth and the general fiscal health of American households.

Even as we wait for things to improve, however, society remains enterprising. Many, in fact, have chosen to use this time as an opportunity to further their educations and improve their employment prospects.

A college degree can significantly enhance a person’s earning potential. According to a 2006 U.S. Census Bureau report, adults 18 and older with a bachelor’s degree on average earned $51,554 in 2004, almost $23,000 more per year than those with only a high school diploma.

People with advanced degrees fared even better, with average earnings of $78,093. And work force projections estimate jobs for as many as 22 million new workers with college degrees by 2018.

But to take that important step and unlock their full potential, many students require financial assistance.

Even as that assistance becomes more critical to struggling families, federal funding for student aid is in peril — about $30 billion has been cut from critical financial aid programs.

Additionally, Congress’ Joint Select Committee on Deficit Reduction (better known as the supercommittee) failed to devise a plan to reduce the nation’s deficit by its Nov. 23 deadline. Barring any additional congressional efforts, this will trigger across-the-board budget cuts to federally funded programs, including education, in 2013.

While the effort to reduce our nation’s deficit is commendable, these cuts are scheduled to hurt two of the programs designed to aid people with the greatest need for educational assistance.

Federal Supplemental Education Opportunity grants are slated to be reduced by $57.4 million, which will affect 1.3 million students across the country, and $76.3 million in work study funding also is on the chopping block.

Deeper cuts are scheduled into the future. The maximum federal Pell Grant award to individual students, which provides need-based assistance to families with the lowest income, is scheduled to be cut by more than $300 starting in the 2013-14 academic year and an additional $400 in the 2014-15 academic year.

Similar cuts are scheduled for subsequent years. These cuts could have a significant impact on the approximately 9 million students who rely on them.

In addition to Department of Education aid, these automatic cuts also will affect forms of student financial assistance offered through other agencies, such as scholarship and fellowship programs sponsored by the Department of Defense, NASA and the Environmental Protection Agency.

You can quickly and easily support the preservation of financial aid for your family and others by signing the Student Aid Alliance petition, which can be accessed by visiting www.studentaidalliance.org and clicking the “Save Student Aid!” button. More than 130,000 already have signed to support this effort.

Education is one of society’s greatest means to empower people and strengthen communities. Please join thousands of others across the country in asking our lawmakers to protect this important resource.

Christine M. Wiseman is president of St. Xavier University in Chicago.