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College Talk Blog

Will sequestration affect your college aid package?

Sequestration is a process with all kinds of intended and unintended consequences. Students who qualify for some grants will be affected, specifically TEACH grants but not Pell. Students who rely on loans will face rising interest rates.
 
Lawmakers in favor of sequestration may think the goverment-economic-belt-tightener will impact students whose families pay low or no taxes. In fact, sequestration is more likely to have the most direct effect on middle class students who rely heavily on loan and other self-help programs like the TEACH grant.
 
Although sequestration may make proponents feel good about doing something immediate about reigning in the national budget, it is likely to have a very negative long term impact on the middle class consumer budget in the future when higher interest student loans come due.

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