Sequestration = fewer funding opportunities?

[Gustav]

Just saw this article about the potential effects of sequestration. There are some passages, which I am quoting below, about how it may affect the financial-aid we are supposed to receive if admitted. Since I am not familar with how the American public university system works, I am wondering what you guys think about it. Will it affect those of us who are still waiting to hear about funding at public schools?

http://chronicle.com/article/Sequestration-Presents/137617/

The Student-Aid Recipient

U.S. Education Secretary Arne Duncan warned that the reductions would have a significant impact on both the financing and delivery of federal financial aid for college students. Although the Pell Grant program is exempt from cuts for the first year of sequestration, programs like the Supplemental Educational Opportunity Grant and Federal Work-Study would be cut by millions of dollars, eliminating more than 100,000 students from participation.

But most students won't see the effects of cuts to those programs until July 1, when the financial-aid program year begins. Most colleges send out their financial-aid award letters to students in March and April, but many institutions will have to do so with an asterisk or a caveat until they are notified of new allocations of federal funds from the Department of Education, according to Justin Draeger, president of the National Association of Student Financial Aid Administrators.

Once colleges are notified of exactly how much federal money they will receive for the 2013-14 school year, institutions may need to send students revised financial-aid letters, or determine if they can help fill the gap for students out of their own budgets.

It is disappointing, Mr. Draeger said, to have such financial battles late in the academic year, because it creates "an air of uncertainty" for students and their families.

"We leave them scrambling with too many unknowns at a time when they should be narrowing down how much they'll be paying for college," Mr. Draeger said.

Students should keep in close contact with their campus financial-aid offices, he said, to ask if they can expect any reduction in aid.

Edited March 1, 2013 by Gustav

[Quantum Buckyball]

I think that only applies to American citizens and legal residents.

[galateaencore]

also, isn't this applicable mostly to undergraduates? 

[hwrios]

yeah, this should be more of a concern to undergrads.  Makes me really glad i'm graduating in May, because I had Pell Grants for 4 years.  

I'm assuming it will effect all loans and any funding that is gov. issued though.  I think quite a bit of Grad. funding is private, so that wouldn't be affected until later if people decide to stop giving money to the schools.

[galateaencore]

thank god this country has prestigious private schools. that way, people can still go to grad school in a subject they like and not have to subsist on refried beans when their funding is cut in half by experimental fiscal policy.