Debt crisis: What does it mean for your student financial aid?

You've been dreaming of this day, but paying to get there might become a lot more difficult.

Add undergraduate and graduate students to the list of people who are getting headaches over the debt crisis. An agreement, or lack thereof, will most likely have an impact on student financial aid one way or another. It’s just not clear yet how great that impact will be.

According to Justin Draeger, the president of the National Association of Student Financial Aid Administrators, if President Obama isn’t even sure whether Social Security checks will be issued, it doesn’t look very good for the future of student financial aid.

“I think there is a huge question mark out there,” says Draeger. “If the ceiling is not raised and the government doesn’t have enough revenue, than we will get into a situation where there are a lot of uncertainties about what the government will or won’t pay for.”

Even if a deal is reached by the August 2nd deadline, student financial aid will most likely still take a hit. NASFAA provides a side-by-side comparison of two competing proposals to reduce the deficit by Senator Majority Leader Harry Reid and House Speaker John Boehner. Both would eliminate interest subsidies for graduate and professional students for programs beginning on or after July 1, 2012.

Getting worried? Draeger says the best thing you can do is stay informed. “The advice we always give is to stay in contact with your school’s financial aid office. They will have the most up-to-date information,” he says.

In the past week, concerned students have taken to the Internet in an effort to protect financial aid.  The organization Save Pell encouraged people to get the word out through social networking campaigns that Pell grants are at risk of being reduced.

If you’re concerned about the future of your financial aid, you can take it one step further, Draeger says. “Pick up the phone and contact your congressional delegation and urge them not to enact spending cuts on the backs of students and to reach an agreement to ensure that they have access to the student financial aid.”


News
Entertainment
Sports
Lifestyle
News

Explosions in new Boston Marathon bomb panic, 'twisted'…

A fresh Boston Marathon terror alert, which caused Bomb Squad officers to order an evacuation while two controlled explosions were carried out, was today being…

Local

Bomb squad detonates backpacks left at Marathon finish…

The Boston Marathon finish line has been evacuated and the Copley Square T station has been closed as police investigate a suspicious package, WBZ is reporting.

National

Reddit boosts news capabilities in social media turf…

By Jennifer SabaNEW YORK (Reuters) - Reddit, a website with a retro-'90s look and space-alien mascot that tracks everything from online news to celebrity Q&As,…

National

Missouri man charged with sexually torturing five women

A Missouri man has been charged with raping and torturing five women in a St. Louis-area apartment over several years, law enforcement officials said on Tuesday.

Television

'Orphan Black's' Jordan Gavaris talks Felix's Season 2…

Jordan Gavaris plays heroically helpful foster sibling Felix to main clone Sarah on "Orphan Black." We talked to him about what’s ahead for him in…

Television

TV watch list, Tuesday, April 15: 'New Girl,'…

'New Girl' Nick and Jess are hiding their breakup from the other loft residents. And Winston passes the police academy exam! That guy needed some…

Television

'Orphan Black' is back with 'crazy clone shenanigans'

“Orphan Black” is the little show that could. It had a few things working against it: a sci-fi premise, attracting an audience who had never…

The Word

Kelly Osbourne and Paris Hilton fight over a…

Paris Hilton and Kelly Osbourne, both members of famous families and natives of the reality boom of the early aughts, should be great friends. And yet.

MLB

MLB video highlights: White Sox beat Red Sox…

Red Sox fall on walk-off error to White Sox

NBA

NBA Draft Lottery day is May 20: Celtics…

NBA Draft Lottery day is Tuesday, May 20: Celtics percentage odds for a top overall pick

MLB

Opinion: Major League Baseball replay system shouldn't be…

Opinion: Major League Baseball replay system shouldn't be dumped just yet

NHL

Bruins - Red Wings preview: David Krejci ready…

Bruins - Red Wings preview: David Krejci ready to erupt once again in playoffs

Home

Steal home decorating tips from Nattystyle blogger Natalie…

Despite the towering ceilings and enviable exposed brick, it’s easy to see how Natalie Decleve’s apartment could be considered a challenge. Perched above the streets…

Home

How to plant a garden in the city

Small on space but big on gardening? You can still have that welcoming oasis of fresh air with an urban garden. Peter Smith, owner of…

Style

Victoria's Secret Fashion Show moving to England

It will still broadcast on CBS this fall.

Tech

Google Glass finally goes on sale for regular…

The Google Glass finally went on sale for regular people. It only costs $1,500.