Dive Brief:
- Even though it's not in the budget blueprint released Tuesday, House GOP leaders have proposed cuts that would do more damage to post-secondary student aid than initially expected.
- The Chronicle of Higher Education reports that a committee aide confirmed Wednesday that Republicans also want to eliminate the interest subsidy on Stafford loans, limit eligibility for income-based repayment, and end loan forgiveness for public sector workers.
- The Senate’s budget proposal, also drafted by Republicans, does not automatically freeze Pell grants for the next decade but it subjects the program to annual approval in the appropriations process, which could make cuts more likely, according to the article.
Dive Insight:
The United States arguably has one of the most expensive higher education systems in the developed world when it comes to costs to students. At a time when post-secondary education is seen as critical to job opportunity, rising costs at traditional universities are threatening to freeze out low-income students or leave them with crippling debt. This scenario has been a significant factor in the surge in alternative credentialing programs and low-cost online alternatives. While Congressional Republicans have proposed similar cuts to student aid programs in the past, they haven’t had control of both chambers of Congress through which to push their agenda. The concern this year is that the cuts have a greater chance of making it into the final budget than in recent attempts.