"By eliminating it, students would need to borrow more in order to cover the loss of the interest subsidy," she says. "The longer you stay in school, the more costly it becomes."

But Kasich wants to end the in-school interest subsidy because it is unfair to other borrowers, Cuthbertson says.

"When you go to get any other type of loan, you do not get that type of subsidy from the federal government," he says.

Cutting financial aid is "sort of a pet project of [Kasich]," says Derek Lick, spokesperson for former Budget Committee chair and current ranking minority member Martin Olav Sabo (D-Minn).

The Harvard Lobby

Because such drastic changes in student aid are being discussed in today's era of divided government, Harvard is joining other institutions of higher education to lobby intensely to preserve student assistance programs.

"We have been working quite hard to join with other institutions and/or associations to try to persuade the Congress not to proceed [in cutting financial aid programs]," says Nan F. Nixon, Harvard's director of governmental relations. "Thirty higher education associations have joined together to create an alliance to try to prevent the cuts in student aid."

Nixon says her lobbying efforts do not involve writing checks but represent, instead, an exchange of information.

"You try to present what the arguments are, both in writing and verbally, to people on both sides of the aisle," Nixon says.

Harvard's Vice President of government andCommunity Affairs, James H. Rowe III '73, saysCongress should not cut student financialassistance haphazardly or without thought.

"Campus-based aid comes in a variety of waysand is tailored to the individual student's need,"Rowe says. "That is a difficult area to legislatein."

And Hicks adds that federal student loansubsidies should not be curtailed because theyrepresent investments that will lead to long-termeconomic growth.

"The money that is spent on these programswould be well spent," she says. "It's aninvestment in human capital, and that's better forthe economy."

But the lobbying effort of Massachusettsinstitutions of higher education has become muchmore difficult with the ascendancy of a Congressdominated by Republicans from the South andMidwest, Cotton says.

"Massachusetts is not the player that it was inthe past when we had committee chairmen," he says."All the news we have gotten is thatRepresentative Kasich is determined to end theinterest subsidy."

Nixon says she has spoken to both Republicansand Democrats about the issue, and individuals onboth sides appear to be concerned.