Despite fears of massive cuts in government support of financial aid, the University will likely be able to maintain the lion's share of its federal funding in the coming year.

While educational grants and student loans were early targets of cost-cutters trying to balance the federal budget, funding for many of these programs has been saved for the moment, according to those inside the Beltway.

Of more immediate concern than long-term budget cutting has been the federal government's inability to pass a budget this year.

The ensuing government shutdowns have led to delays in processing applications for aid and distributing payments, though Harvard financial aid officials say no students will have to register late as a result.

Greener Pastures

Any cuts in federal funding would have dire consequences for the amount of aid Harvard is able to give its students, according to Director of Financial Aid James S. Miller.

The vast majority of direct loans, seven to eight percent of the scholarships Harvard awards and about half its student jobs are funded with federal money, Miller says.

But Republicans and Democrats alike are saying that educational funding has been largely spared by recent Congressional action.

According to figures released by the Republican-controlled Congressional Committee on Economic and Educational Opportunities, funding for student loans will actually increase by 50 percent over the next seven years, from $25 to $36 billion.

Congress decided not to act on earlier plans to cap spending for the federal direct loan programs.

In addition, fees for students receiving these loans will not be increased in the near future, according to Robert M. Shireman, legislative director for Senator Paul Simon (D-Ill.).

Congress has also increased the maximum size of Pell Grants by $100 to $2,440, Shireman says.

"There was a massive threat and we have beaten back a part of that threat," he says.

The bad news is that other programs like matching funds for fellowships and state research grants have been severely restricted, particularly affecting large research universities such as Harvard, Shireman says.

Still, University lobbyists say they are, on the whole, pleased with Congress' decisions.