NORTHRIDGE : Rally Will Protest Cuts in Student Aid

Cal State Northridge students, faculty and administrators--including President Blenda J. Wilson--are scheduled to hold a rally on Monday to protest proposals in Congress to cut financial aid programs at public colleges and universities.

Of chief concern to the protesters is a proposal in the House of Representatives to eliminate federal interest subsidies on Stafford Loans, the largest financial aid program in the country. Currently, the federal government pays the interest accrued on Stafford Loans while students are still in college.

“This will affect virtually every student on financial aid,” said CSUN director of financial aid Diane Ryan. “It raises the cost of borrowing.”

According to university officials, the elimination of in-school federal subsidies would increase the cost of a loan by up to 30%.

“The students would be subject to interest accruing while they are in school and will be swaddled in payments once they get out,” Ryan said. “It’s insidious. Students who qualify for financial aid are already poor.”

Other cuts proposed by both the House and the Senate involve the complete elimination of direct student loans and some campus-based aid programs, such as work-study and school fellowships. With the federal government paying 75% of work-study program salaries, said Ryan, many potential employers would be unwilling to hire students if the school’s work-study program was eliminated.

“They won’t be able to handle the cost,” she said. “Some of those jobs are directly related to campus majors. This will deny students the opportunity to experience their fields firsthand.”

According to Ryan, without these financial aid programs some students will be forced out of the campus environment altogether.