UW president warns half of students could be affected by federal student loan cuts

Yahoo

06-05-2025

Jay O. Rothman, president of the University of Wisconsin System, speaks during the UW Board of Regents meeting hosted at Union South at the University of Wisconsin–Madison on Feb. 9, 2023. (Photo by Althea Dotzour / UW–Madison)
As Congress is considering remaking the federal financial aid program, Wisconsin higher education leaders are warning that changes could significantly affect access to its campuses.
Universities of Wisconsin President Jay Rothman wrote in a series of posts on social media last week that he is 'very disappointed' by the potential cuts that could be made to student aid.
Congressional Republicans recently introduced a 103-page proposal that would overhaul the federal financial aid system with cuts meant to help support the extension of tax cuts. Changes would include reducing eligibility for Pell Grants by requiring students take more credit hours to qualify, capping the total amount of student loans one can take out annually and ending certain student loan programs.
The proposed changes come alongside the Trump administration's work to remake the system by moving the student loan portfolio from the Department of Education to Small Business Administration, even as both agencies have had significant layoffs, and seeking to eliminate loan relief for people working to support immigrants and trans kids.
Rothman said nearly half of the 164,400 students across University of Wisconsin campuses rely on federal aid to access the schools and noted that many of the students receiving the help are first-generation college students and low- to middle-income. He said federal financial aid has helped better the U.S. economy and allowed millions of people to improve their own lives.
'It makes no sense for the US to narrow opportunities if our country wants to win the global War for Talent. I'm dumbfounded that cutting educational opportunities would even be considered when our economic vibrancy is at stake,' Rothman wrote. 'While the UWs are among the most affordable in the nation, many lower- and middle-class families rely upon federal financial aid to make these life-changing educational opportunities real.'
Rothman urged Congress to reevaluate the potential cuts in the federal budget, continuing his advocacy for keeping the UW accessible for current and future students.
In a letter to the Wisconsin Congressional delegation last month, Rothman noted that in the 2023-24 school year, 91,000 UW undergraduate students — or 59% — received some form of financial aid. The federal government distributed $130 million in Pell grants to about 23.4%, or 26,060 undergraduate students that year, delivering an average award of $5,000.
During that year, undergraduate and graduate students across the system received nearly $1.5 billion in financial aid, including $634 million in grants, $666 million in loans and $13 million in work-study funding.
'Programs like the Pell Grant and other federal financial aid are critical to ensuring continued access and success for students who choose to pursue higher education,' Rothman wrote to lawmakers. 'Indiscriminate cuts whether to research, financial aid or programs that provide student support are ultimately shortsighted and will negatively impact the next generation of Wisconsin's workforce.'
Rothman is not the only leader who has expressed concerns about cuts to programs. During a hearing last month, Wisconsin Association of Independent Colleges and Universities President Eric Fulcomer told state lawmakers that 'cutting the Pell Grant or eliminating the Pell Grant would be devastating for our sector.' He said private colleges could be looking at a 27% cut to enrollment.
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