After Harvard, now Columbia: Trump to cut federal student loans and Pell Grants?

Time of India

2 days ago

Donald Trump is nowhere near loosening his chokehold on campuses.
First, the US President went after Harvard University. Now, it's Columbia's turn.
In a significant escalation of his administration's education policies, Trump has announced plans to cut federal student loans and Pell Grants, impacting institutions like Columbia University.
This move follows a series of actions targeting higher education funding and student aid programs.
What's happening?
The Trump 2.0 administration has been actively pursuing a reduction in federal spending on education. In early 2025, the Office of Management and Budget (OMB) ordered a pause in the disbursement of federal grants and loans, citing the need to prevent funding for diversity, equity, and inclusion (DEI) programs. Although the initial order was stayed by a district judge, the administration has continued efforts to freeze federal funding, including student loans and grants.
Additionally, President Trump's budget proposal for 2025 includes more than $200 billion in cuts to student aid programs. This includes freezing the maximum Pell Grant, effectively reducing its value against inflation, and expanding eligibility to untested short-term programs.
What is a Pell Grant?
A Pell Grant is a federal financial aid program in the United States designed to assist undergraduate students with exceptional financial need in paying for their college education.
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Unlike loans, Pell Grants do not require repayment, making them a valuable resource for students pursuing higher education.
Established in 1972 and named after Senator Claiborne Pell, the Pell Grant is administered by the US Department of Education. For the 2024–25 academic year, the maximum award is $7,395. The actual amount a student receives depends on several factors, including:
Student Aid Index (SAI):
Calculated from the Free Application for Federal Student Aid (FAFSA), this index reflects the student's financial need.
Cost of Attendance (COA):
Determined by the institution, this includes tuition, fees, room and board, and other educational expenses.
Enrollment Status:
Full-time students may receive a higher award than part-time students.
Academic year duration:
Students attending for less than a full academic year may receive a prorated amount.
Pell Grants can be used to cover various educational expenses, such as tuition, fees, room and board, textbooks, school supplies, and transportation.
However, if a student withdraws early, changes enrollment status, or receives other forms of aid that reduce their financial need, they may be required to repay the grant.
Columbia University: a clear target
Columbia University has become a focal point of the administration's education policy changes. In March 2025, the Trump administration announced a $400 million cut in federal grants and contracts to Columbia, citing the university's failure to combat antisemitic harassment on campus.
This action was taken after allegations that Columbia had violated federal anti-discrimination laws, particularly regarding inadequate responses to antisemitism following the October 2023 Hamas attack on Israel.
Notably, Mahmoud Khalil, who was arrested by the US Immigration and Customs Enforcement (ICE) in March 2025, was affiliated with Columbia University.
He was a graduate student at the School of International and Public Affairs (SIPA), pursuing a master's degree in public administration.
Khalil completed his degree in December 2024 and was legally residing in the US as a green card holder.
Khalil gained prominence for his active involvement in pro-Palestinian activism on campus. He served as a lead negotiator for Columbia University Apartheid Divest (CUAD) during pro-Palestinian campus protests in 2024.
Khalil completed his master's degree at Columbia's School of International and Public Affairs in December 2024.
However, his arrest prevented his participation in the May 2025 commencement ceremony. His wife, Dr. Noor Abdalla, who was eight months pregnant at the time, accepted his diploma on his behalf during an alternative ceremony organized by fellow students.
Impact on students and educational institutions
The proposed cuts to federal student loans and Pell Grants are expected to have significant consequences for students and higher education institutions. At Columbia, nearly half of the student body relies on federal aid, with 49% receiving Pell Grants.
Students have expressed concerns about the possibility of dropping out or accumulating more debt if these funding cuts are implemented.
In fact, it's not just Columbia University, other universities are also feeling the effects of the administration's education policies. New York University, for example, has had at least two grants terminated, putting more than half of its research funding at risk. Similarly, the University of Pennsylvania faces a $175 million federal funding freeze, and Northwestern University may lose over $100 million annually.
The Trump-Harvard row:
The Harvard-Trump standoff began when President Donald Trump's administration accused Harvard of fostering antisemitism, promoting 'woke' ideologies, and favoring minority admissions over white and Asian applicants. In retaliation, the administration announced a freeze on nearly $3 billion in federal research grants and threatened to revoke Harvard's eligibility to host international students. These measures have created an atmosphere of uncertainty for thousands of foreign students, including the Canadian Prime Minister's daughter Cleo Carney, Princess Elisabeth, the Duchess of Brabant, and the heir to the Belgian throne.
In response, Harvard filed a lawsuit against the federal government, arguing that the actions violated academic freedom and due process. A federal judge issued a temporary restraining order blocking the ban on international students, providing a temporary reprieve.
But to make things more complicated and intense, Trump signed an executive order on June 4, suspending the entry of foreign nationals seeking to study or participate in exchange programs at Harvard University for six months.
The order cites national security concerns, alleging that Harvard's conduct makes it an unsuitable place for international scholars. It affects students from 19 specified countries and halts new entries under F, M, or J visas.
Additionally, the Secretary of State is empowered to revoke existing visas for current Harvard students. Harvard has criticized the order as a retaliatory violation of its First Amendment rights and vowed to defend its international students.
However, Harvard has legally challenged the executive order, arguing that it is politically motivated and infringes upon the university's autonomy and academic freedom. The institution contends that it has complied with federal demands for records concerning foreign student misconduct and disputes the accusations of inadequate transparency.
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