CSUN Rally Warns of Cuts in Aid : Schools: Educators, administrators say proposed cutbacks in federal assistance to students could force many out of college.

Warning students that their future education is in jeopardy, campus and outside administrators held a rally Monday at Cal State Northridge to rouse opposition to billions of dollars in proposed financial aid cutbacks soon to be considered by the Republican-led Congress.

Fewer than 10 CSUN students attended the little-publicized event on the first day back from spring break. But organizers said they gathered student signatures on more than 350 postcards that will be sent to Rep. Howard P. (Buck) McKeon (R-Santa Clarita)--whose district includes the campus--opposing aid cuts.

The protest was organized by the California Assn. of Student Financial Aid administrators, which includes administrators on the CSUN and other campuses.

Although most of the specifics have yet to be introduced as legislation, Republicans in the House of Representatives eager to trim the federal deficit could vote this year on a series of proposals now under discussion to trim more than $20 billion from federal student aid programs over five years.

“There has never been a more Draconian legislative agenda than what we are looking at right now” in student aid, said Diane Ryan, CSUN’s financial aid director. CSUN provides about $43 million in annual financial aid to nearly 10,000 of its 23,600 students, most of it from federal programs.

CSUN President Blenda J. Wilson, another speaker at the event, said the Republican proposals if enacted would constitute “the largest increase in the cost of college in the nation’s history” and would drive many low- and middle-income students out of higher education.

The biggest potential cut would add 20% or more to the costs borne by students in repaying loans from the subsidized Stafford program. Students, rather than the federal government, would become responsible for interest that accrues on those loans while students remain in school.

That shift would save the government $12.5 billion over five years. But it also would add $20 to $40 per month to the bills paid by students when they begin repaying the loans after leaving school. Although it is popular with Republicans, President Clinton has vowed to veto that plan if passed.

But McKeon, who will be influential on the issue as chairman of the House subcommittee on post-secondary education, is “seriously considering” supporting the change, said McKeon spokesman Armando Azarloza. He said McKeon doesn’t believe the cost shift would keep students from attending college.

Meanwhile, Azarloza said McKeon will oppose funding cutbacks proposed for various other federal aid programs, including loans, grants and work study. “We’re trying to save those by looking at how we can restructure the interest subsidy,” Azarloza said.

Another proposal, which has already passed the House as part of welfare reform legislation, would have a major impact in California by making thousands of students who are legal residents, but not U.S. citizens, ineligible for federal financial aid.

Josh Stone, director of legislative affairs for CSUN’s student government group, said many students on campus just aren’t aware of the changes being discussed in Washington and how they could be directly affected. “Most students don’t know what’s going on,” he said.

David Merkowitz, a spokesman for the American Council on Education, the main higher education lobbying group in the United States, said the legislative debate over student aid probably will be prolonged. He says that proposals for cuts that may fail this year are almost certain to resurface again next year.

“If you’re a high school student who’s just been admitted to college, you may be OK for next year, but beyond that you can’t count on anything,” he said. “These programs will be under constant attack for the foreseeable future.”