President Obama's budget plan will inevitably cut a significant amount of money out of the Pell Grant program, but there are still a lot of pieces missing to the budget's puzzle. All higher education institutions will be affected by cuts in Pell Grants, but Auburn's financial aid services are still wondering about the plan.
There have not been any definite decisions made about the Pell Grant, but the federal government plans on saving billions of dollars next year by cutting funds from budgets, according to the Associated Press.
There are two proposals that may be the solution for the new budget. The first proposal would end the policy that allows students to collect two grants in one calendar year.
This idea may be able to save approximately $8 billion next year.
The other proposal would reduce or eliminate loan subsidies for graduate and professional students, which could save nearly $2 billion.
Both proposals would need approval from Congress.
"Basically what happened is they overspent, and now they are trying to cut back for things they just spent for," said Michael Reynolds, executive director of student financial services.
The Pell Grant is government money awarded to students who need the most financial help to earn a higher education degree.
"You don't want to go backward on it for the neediest students," Reynolds said. "That would definitely hurt them."
Although there will be cuts in the grant, it will only affect the summer semester, which is better than cutting off the fall and spring semesters, Reynolds said.
Auburn students received an e-mail from the financial aid office explaining the grant will change, but the details of those changes are still unclear.
Those who received the Pell Grant under the original conditions and terms should not receive any less funding, but there are still a lot of decisions to be made.
"I have a 'wait and see' attitude," said Matt Kelly, senior in prelaw and Pell Grant recipient. "I just have to wait and see how it affects my grant because I really do depend on it."
It will be hard to tell whether budget cuts in the Pell Grant will affect enrollment at Auburn since there has not been a definite decision made on the budget.
"I think it will be more strenuous requirements so it will be a little bit harder to get," Kelly said.
Reynolds said the money saved from the funding cuts in the Pell Grant is strictly to recover for overspending. Its savings will not be disbursed into other scholarships or grants.
Reynolds said he wants to use all the money the office receives from the federal government to help students pay for college.
"I received financial aid through this office," Reynolds said. "I would have never received a degree if it had not been for financial aid. I feel like I'm an excellent example of its importance."
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