Many Loyola students may be forced to find alternate means of funding for their college education if President Bush’s current budget proposal is passed.
The proposed budget for the 2006 fiscal year eliminates five federally funded student aid programs in favor of increasing federal funding for the Pell Grant. The most notable program on the chopping block is the Perkins Loan program.
In the 2003-04 academic year, students in the United States borrowed a total of $1.46 billion in Perkins Loans. The average amount borrowed per student was $2,004. As of the 2003-04 academic year, 521 Loyola students were receiving Perkins Loans, according to the Office of Scholarship and Financial Aid.
In addition to discontinuing the loan, which would not go into affect until the 2006-07 academic year, the current budget proposal calls for institutions to repay the money given by the federal government to all institutions for the Perkins Loan since the programs inception, said Catherine Simoneaux, director of the Office of Scholarship and Financial Aid.
Simoneaux explained that Loyola would have to repay $4 million over the course of 10 years if Congress passes the proposal. In addition to the $4 million to be repaid, the university would also no longer receive the $60,000 given to the school annually for the purposes of the Perkins Loan.
She did note, however, that due to concessions when passing the budget, it would be unlikely that institutions will ultimately have to repay the federal money given to them for the Perkins Loan program.
In addition to the Perkins Loan, the current budget proposal will also eliminate LEAP state grants, Upward Bound, Talent Search and Gear Up early intervention programs.
According to Simoneaux, 15 Loyola students are currently receiving about $31,000 in aid from the LEAP grant. Because many of these students are also receiving Perkins Loans, they run the risk of being out an average of $4,000 in aid.
“We are not trying to scare people,” she said, “but it is important for students to pay attention.”
Simoneaux stressed the importance of keeping informed and contacting local representatives regarding this issue.
“Politics can rear its ugly head at any point in this,” she said. “You have to make your voices heard.”
The elimination of these student aid programs is meant to increase the funds for Pell Grant recipients, which traditionally are awarded to low-income students.
The Pell Grant currently has a maximum award of $4,050 each year, according to the National Association of Student Financial Aid Administrators.
The current proposal would increase the maximum award $100 each fiscal year for five years.
The plan effectively raises the average Pell Grant recipient’s award $100, while removing the $2,003 loan to the average Perkins Loan recipient.
“You can understand the idea, because grants are better than loans, but the math simply doesn’t make sense,” Simoneaux said. “The whole idea to fund Pell from Perkins ignores the fact that most students are on both. They need both.”
The Rev. Kevin Wildes, S.J., university president, expressed his concerns regarding the elimination of the Perkins Loan program and its ramification to the students and the university as a whole.
“The biggest thing we are doing is working on Capital Hill to preserve the program,” Wildes said.
Tommy Screen, the newly appointed assistant to the president for govermental relations, has been working in Washington, D.C., with government officials in an effort to preserve the Perkins Loan.
Screen explained that the budget battle began in Congress shortly after President Bush made his proposals. The House of Representatives passed the appropriations that would eliminate the Perkins Loan.
The Senate, however, called for an increased investment in federal student aid.
Senator Edward Kennedy (D-MA), proposed a $3 billion amendment to the budget that would save programs such as the Perkins Loan.
The amended budget was passed and will be assessed in a conference committee between the House and the Senate in the coming week when Congress reconvenes from Easter recess.
“Any sort of movement toward reconciliation between the two, like any negotiation, will meet somewhere in the middle,” Screen said.
Screen stated the Perkins Loan’s chances are looking much better than they did in early March, although it is still in danger. Simoneaux agreed.
“This is going to be a marathon, not a sprint.”
Adam Hennessey can be reached at [email protected].
