Georgetown, Local University Students Face Aid Cuts Under Sequester

Students at DC universities, including Georgetown University, could face cuts to federal student aid in the coming semesters if sequestration goes into effect.

The National Association of Student Financial Aid Administrators (NASFAA) calculated what the cuts would be mean for universities and colleges across the country.

"By the time the sequester cuts are implemented most colleges will have provided students with financial aid awards, which will then have to be reduced, leaving families scrambling to fill the gap," NASFAA President Justin Draeger said in a press release.

Pell grants, which help students in the most need, are thus far protected under sequestration.

But Federal Supplemental Educational Opportunity (FSEO)—additional grant money for students with demonstrated financial need—and Federal Work Study—part-time jobs that help pay for additional educational costs—would be impacted.

The government will still guarantee the base level guarantee for these grants, but does impact the "fair share increases" students might receive based on their need. NASFAA assumed a "5.1 percent cut to the overall appropriation of each of these programs."

According to sequester documents from the White House, these cuts translate into around 510 fewer DC students receiving work study jobs and about 500 fewer low income students receiving aid for college costs. 

In his 2013 Spring Faculty Town Hall address in February, Georgetown University President John DeGioia addressed concerns over sequestration several times.

"For a university located here in the nation’s capital, we would expect to see a disproportionate impact, due to the anticipated effects on our regional economy," DeGioia remarked.

He said the university has taken sequestration and other financial impacts info consideration in its planning.

Despite the uncertain climate, GU has committed to contiunuing its need-blind admissions process. While Georgetown might not be able to make up for the loss of federal funding entirely, it will not factor a student's probability of being able to pay into whether he or she should be admitted.

The University website explains this policy, "Georgetown University admits and enrolls students without regard to their financial circumstances and is committed to meeting the demonstrated financial need of eligible students through a combination of aid programs that include grants, scholarships, employment and loans from federal, state, private, and University resources."

The sequester will go into effect no later than 11:59 p.m. Friday if no solution is found.

President Barack Obama issued a statement Thursday afternoon saying he intends to meet with leaders from both parties to try to broker a "path forward."

How will sequestration impact you and your family?