When it comes to federal aid for college students, I was told to shut up
It’s no secret that federal financial aid is a lot harder to get than it used to be.
But with President Donald Trump’s budget proposal for next year, the administration wants to make it easier to get that money for students at public colleges and universities.
As it turns out, the answer is not a simple one.
While the Department of Education would have us believe that higher education funding is flat, the actual situation is very different.
The number of dollars available for federal aid has been dropping for a number of years, especially in states where the student population is shrinking and there are fewer resources for students to attend.
For example, from 2009 to 2020, the amount of federal aid available for higher education grew by $1.6 trillion.
But from 2020 to 2022, the federal government cut aid by about $2.4 trillion, leaving $1,717 billion available for students, according to data from the College Board.
So the Trump administration is proposing to make higher education more expensive for some students, but not for everyone.
And that will have a negative effect on those students who would otherwise be able to afford it.
So what do we do about it?
The idea of cutting aid by $2 trillion to students who qualify for federal financial assistance may sound reasonable, but it has a major drawback.
It doesn’t help students who have more financial resources.
The College Board data showed that a quarter of students at some schools were receiving aid that was actually higher than the amount needed to pay for a year at their school.
In other words, those students may be able see aid that is lower than what they would need to make ends meet.
So how does the Trump budget affect these students?
The budget would eliminate $2,500 in aid for each $1 a student earns.
That means that a student who earns $100,000 a year will only see about $700 in federal aid over a two-year period.
That’s a pretty significant cut.
The budget also would reduce federal aid to all students.
For every $1 in aid a student receives, they would lose $100.
So students who earn between $100 and $150,000 would lose more than $2 million in federal funding.
And those students would also lose $500 in state aid over two years, according the College Fund.
Even worse, the budget would cut aid to students in private schools, where enrollment is higher.
So while there are many students at private schools who could benefit from the proposal, the majority of students would be worse off, as they would have less money for college.
How would this affect the federal student loan program?
The Federal Student Loan Program (FSLP), which provides federal aid and loans to students, is a program that is supposed to help students pay for college, but the cuts to it would mean a major cut in federal funds.
The FSLP is supposed “to help students save for college and keep up with tuition, fees, and room and board,” according to the Office of Management and Budget.
But the cuts would mean students who are already struggling would see less of a cushion.
“If you take the FSLO cut, for every dollar a student saves, they lose about $1,” said Jessica Dermody, executive director of the Higher Education Assistance Center at the advocacy group Public Citizen.
“The bottom line is that the FSUP would get a huge blow to its mission of helping students graduate with a degree, get jobs, and help pay for living expenses.”
The FSUPA is funded by an income tax on income earned before tax, but that income doesn’t have to be reported to the IRS.
So a student would still have to pay taxes on any extra income, regardless of how much they earn.
If the FSP were to be eliminated, that income would no longer be available to students.
The administration argues that the cut would save about $250 billion in federal assistance for students.
But that claim is problematic because the federal funding for higher ed has actually increased in recent years.
In the last two years alone, the FSFPA has helped over 2.6 million students graduate from college.
So eliminating that funding would leave millions of students in a worse position than they were before.
Is there a way to fix it?
There are two different ways the Trump government could fix the problem.
First, it could use some of the $2 billion in cuts to offset the cost of the FSS to students and other federal aid.
“A student can only take out federal aid in two ways,” said Michael T. Miller, the director of research at the Center for Budget and Policy Priorities, a left-leaning think tank.
First and most commonly, a student can use the money to help pay back student loans, which are subsidized by the government.
That would mean cutting $2-3 billion from the FFS and allowing students to take out loans instead of paying them back, he