Budget cuts for 1995, known in Washington asrecisions, are likely to be limited only toPerkins Loans, according to a staff member on theAppropriations Committee.
The federal Work-Study program is "less likelyto be included in a recision bill," the staffmember says.
Rowe says he is worried that pressures to cutthe deficit will likely lead to cuts in educationfunding.
"I am optimistic about the high level ofinterest and concern for financial aid," Rowesays. "But I am concerned about the complexity ofsome of the programs against the context offunding the deficit."
And Cotton says he is not optimistic thatCongress will preserve all financial aid programs.
"Many of the older members of Congress are moreopen to this position than the freshmen," he says."But there is a sense in which there is a lot ofpressure from the freshmen to do things."
But regardless of what happens to federalfunding, Harvard will maintain its need-blindadmissions process, Rowe says.
"The funds would come from where we get ourother funding," Rowe says. "I don't think that'sgoing to change in the near term."
Hicks says Harvard "will always find a way" toprovide funds to students with need.
"What's good about Harvard is that we do haveresources that we can put to use for creative andinnovative plans," Hicks says. "We have a verydeep commitment to need-blind.
Loss of a Subsidy
The Harvard University office of Financial Aidhas calculated the following costs toundergraduates if funding for financial aid wererepealed. Monthly payment figures assume a loanamortized over ten years. Percentage increase isthe percentage change in total payments over 10years that would be needed to cover the additionalinterest accrued while in school.
Loans borrowed With in-schoolsubsidy Without in-school subsidyYear in school Annual loan limit Totalloan balance Standard monthlypayment Total loan balance Standardmonthly payment Percentage increase1st $2625 $2625 $50 $2876 $50 0.0%2nd 3500 6125 75 6928 85 13.1%3rd 5500 11625 143 13459 165 15.8%4th 5500 17125 210 20445 251 19.4%Total $17125 $17125 $210 $20445 $251 19.4%
Source: Harvard University Financial Aid