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Time of India
5 days ago
- Business
- Time of India
After Harvard, now Columbia: Trump to cut federal student loans and Pell Grants?
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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Mendaftar Undo 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. Melania HITS BACK at Harvard Rejection Claims as Trump SLASHES Ivy Funds | WATCH
Epoch Times
15-05-2025
- Business
- Epoch Times
Does a 529 Plan Affect Financial Aid?
A 529 college savings plan can be a powerful tool when saving for future education expenses because investments in the plan can increase tax-free, but many savers don't take full advantage of all the benefits that 529 plans have to offer. One common deterrent to investing through a 529 plan is the concern that assets in a 529 account will reduce financial aid eligibility. While it's true that 529 assets have an impact on financial aid, the effect is likely smaller than you think. Do 529 Plans Affect Financial Aid? The short answer is yes. An increase in the means to fund higher education naturally means the beneficiary is eligible for less need-based aid. However, assets in a 529 plan have a lesser impact on financial aid packages than income does. A student's federal financial aid is based on an estimate of what a family can contribute annually from their income and assets. Income is the largest portion of this measurement of a student's ability to pay for college, which is represented by the Student Aid Index, or SAI, on the Free Application for Federal Student Aid, or FAFSA. The SAI replaced the expected family contribution, which was previously used on the application. Typically, the SAI calculation expects parents to use 25 percent to 35 percent of their adjusted available income to cover college costs, though that number can go as high as 47 percent. Parental contribution from assets, including 529 account balances, is assessed at a much lower maximum of 5.64 percent. So, if a family has a 529 account with $10,000, this raises the expected family contribution by at most $564 and reduces the federal aid package by the same amount. A 529 Plan's Impact Depends on Who Owns the Account The impact of 529 assets on a beneficiary's financial aid package depends on who owns the account. As outlined above, if the plan is owned by the beneficiary's parent, then 5.64 percent of the account's value is considered in the SAI, which determines a student's financial aid eligibility on the FAFSA. On the other hand, if the plan is owned by the student, then up to 20 percent of the account value may be considered in calculating financial aid eligibility. With changes to the Siblings' 529 Assets Don't Count for Federal Financial Aid After the FAFSA Simplification Act, assets in 529 accounts are counted as parental assets only for the beneficiary of the account. That means, if you have 529 accounts set up for your other children, the assets in those accounts are no longer counted toward the expected family contribution. As mentioned above, accounts owned by grandparents or other relatives will also be excluded from determining federal financial aid eligibility. Financial Aid Eligibility Differs Between FAFSA and CSS Profile There are also schools that use the College Scholarship Service, or CSS, Profile (primarily private schools) to calculate their financial aid packages. The CSS Profile's formula to calculate aid differs from FAFSA's. For instance, the CSS Profile asks for all 529 accounts owned by the beneficiary's parents, whereas the FAFSA only counts 529 accounts for which the student is the beneficiary. Moreover, the CSS Profile is customized by the institution, so each school can have its own formula to calculate its aid packages. While each school that uses CSS Profile information applies its own standards, this Related Stories 8/28/2023 11/18/2024 By Hyunmin Kim, Margaret Giles of Morningstar The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
Yahoo
22-04-2025
- Business
- Yahoo
Does a 529 plan affect financial aid?
A 529 college savings plan can be a powerful tool when saving for future education expenses because investments in the plan can increase tax-free, but many savers don't take full advantage of all the benefits that 529 plans have to offer. One common deterrent to investing through a 529 plan is the concern that assets in a 529 account will reduce financial aid eligibility. While it's true that 529 assets have an impact on financial aid, the effect is likely smaller than you think. Do 529 plans affect financial aid? The short answer is yes. An increase in the means to fund higher education naturally means the beneficiary is eligible for less need-based aid. However, assets in a 529 plan have a lesser impact on financial aid packages than income does. A student's federal financial aid is based on an estimate of what a family can contribute annually from their income and assets. Income is the largest portion of this measurement of a student's ability to pay for college, which is represented by the Student Aid Index, or SAI, on the Free Application for Federal Student Aid, or FAFSA. The SAI replaced the expected family contribution, which was previously used on the application. Typically, the SAI calculation expects parents to use 25% to 35% of their adjusted available income to cover college costs, though that number can go as high as 47%. Parental contribution from assets, including 529 account balances, is assessed at a much lower maximum of 5.64%. So, if a family has a 529 account with $10,000, this raises the expected family contribution by at most $564 and reduces the federal aid package by the same amount. A 529 plan's impact depends on who owns the account The impact of 529 assets on a beneficiary's financial aid package depends on who owns the account. As outlined above, if the plan is owned by the beneficiary's parent, then 5.64% of the account's value is considered in the SAI, which determines a student's financial aid eligibility on the FAFSA. On the other hand, if the plan is owned by the student, then up to 20% of the account value may be considered in calculating financial aid eligibility. With changes to the federal student aid calculation as part of the FAFSA Simplification Act that took effect for the 2024-25 academic year, 529 accounts owned by grandparents or other relatives are not considered student assets and won't impact the beneficiary's financial aid. Siblings' 529 assets don't count for federal financial aid After the FAFSA Simplification Act, assets in 529 accounts are counted as parental assets only for the beneficiary of the account. That means, if you have 529 accounts set up for your other children, the assets in those accounts are no longer counted toward the expected family contribution. As mentioned above, accounts owned by grandparents or other relatives will also be excluded from determining federal financial aid eligibility. Financial aid eligibility differs between FAFSA and CSS profile There are also schools that use the College Scholarship Service, or CSS, Profile (primarily private schools) to calculate their financial aid packages. The CSS Profile's formula to calculate aid differs from FAFSA's. For instance, the CSS Profile asks for all 529 accounts owned by the beneficiary's parents, whereas the FAFSA only counts 529 accounts for which the student is the beneficiary. Moreover, the CSS Profile is customized by the institution, so each school can have its own formula to calculate its aid packages. While each school that uses CSS Profile information applies its own standards, this calculator estimates what your family might be expected to pay. ___ This article was provided to The Associated Press by Morningstar. For more personal finance content, go to
Yahoo
22-04-2025
- Business
- Yahoo
Does a 529 plan affect financial aid?
A 529 college savings plan can be a powerful tool when saving for future education expenses because investments in the plan can increase tax-free, but many savers don't take full advantage of all the benefits that 529 plans have to offer. One common deterrent to investing through a 529 plan is the concern that assets in a 529 account will reduce financial aid eligibility. While it's true that 529 assets have an impact on financial aid, the effect is likely smaller than you think. Do 529 plans affect financial aid? The short answer is yes. An increase in the means to fund higher education naturally means the beneficiary is eligible for less need-based aid. However, assets in a 529 plan have a lesser impact on financial aid packages than income does. A student's federal financial aid is based on an estimate of what a family can contribute annually from their income and assets. Income is the largest portion of this measurement of a student's ability to pay for college, which is represented by the Student Aid Index, or SAI, on the Free Application for Federal Student Aid, or FAFSA. The SAI replaced the expected family contribution, which was previously used on the application. Typically, the SAI calculation expects parents to use 25% to 35% of their adjusted available income to cover college costs, though that number can go as high as 47%. Parental contribution from assets, including 529 account balances, is assessed at a much lower maximum of 5.64%. So, if a family has a 529 account with $10,000, this raises the expected family contribution by at most $564 and reduces the federal aid package by the same amount. A 529 plan's impact depends on who owns the account The impact of 529 assets on a beneficiary's financial aid package depends on who owns the account. As outlined above, if the plan is owned by the beneficiary's parent, then 5.64% of the account's value is considered in the SAI, which determines a student's financial aid eligibility on the FAFSA. On the other hand, if the plan is owned by the student, then up to 20% of the account value may be considered in calculating financial aid eligibility. With changes to the federal student aid calculation as part of the FAFSA Simplification Act that took effect for the 2024-25 academic year, 529 accounts owned by grandparents or other relatives are not considered student assets and won't impact the beneficiary's financial aid. Siblings' 529 assets don't count for federal financial aid After the FAFSA Simplification Act, assets in 529 accounts are counted as parental assets only for the beneficiary of the account. That means, if you have 529 accounts set up for your other children, the assets in those accounts are no longer counted toward the expected family contribution. As mentioned above, accounts owned by grandparents or other relatives will also be excluded from determining federal financial aid eligibility. Financial aid eligibility differs between FAFSA and CSS profile There are also schools that use the College Scholarship Service, or CSS, Profile (primarily private schools) to calculate their financial aid packages. The CSS Profile's formula to calculate aid differs from FAFSA's. For instance, the CSS Profile asks for all 529 accounts owned by the beneficiary's parents, whereas the FAFSA only counts 529 accounts for which the student is the beneficiary. Moreover, the CSS Profile is customized by the institution, so each school can have its own formula to calculate its aid packages. While each school that uses CSS Profile information applies its own standards, this calculator estimates what your family might be expected to pay. ___ This article was provided to The Associated Press by Morningstar. For more personal finance content, go to
Associated Press
22-04-2025
- Business
- Associated Press
Does a 529 plan affect financial aid?
A 529 college savings plan can be a powerful tool when saving for future education expenses because investments in the plan can increase tax-free, but many savers don't take full advantage of all the benefits that 529 plans have to offer. One common deterrent to investing through a 529 plan is the concern that assets in a 529 account will reduce financial aid eligibility. While it's true that 529 assets have an impact on financial aid, the effect is likely smaller than you think. Do 529 plans affect financial aid? The short answer is yes. An increase in the means to fund higher education naturally means the beneficiary is eligible for less need-based aid. However, assets in a 529 plan have a lesser impact on financial aid packages than income does. A student's federal financial aid is based on an estimate of what a family can contribute annually from their income and assets. Income is the largest portion of this measurement of a student's ability to pay for college, which is represented by the Student Aid Index, or SAI, on the Free Application for Federal Student Aid, or FAFSA. The SAI replaced the expected family contribution, which was previously used on the application. Typically, the SAI calculation expects parents to use 25% to 35% of their adjusted available income to cover college costs, though that number can go as high as 47%. Parental contribution from assets, including 529 account balances, is assessed at a much lower maximum of 5.64%. So, if a family has a 529 account with $10,000, this raises the expected family contribution by at most $564 and reduces the federal aid package by the same amount. A 529 plan's impact depends on who owns the account The impact of 529 assets on a beneficiary's financial aid package depends on who owns the account. As outlined above, if the plan is owned by the beneficiary's parent, then 5.64% of the account's value is considered in the SAI, which determines a student's financial aid eligibility on the FAFSA. On the other hand, if the plan is owned by the student, then up to 20% of the account value may be considered in calculating financial aid eligibility. With changes to the federal student aid calculation as part of the FAFSA Simplification Act that took effect for the 2024-25 academic year, 529 accounts owned by grandparents or other relatives are not considered student assets and won't impact the beneficiary's financial aid. Siblings' 529 assets don't count for federal financial aid After the FAFSA Simplification Act, assets in 529 accounts are counted as parental assets only for the beneficiary of the account. That means, if you have 529 accounts set up for your other children, the assets in those accounts are no longer counted toward the expected family contribution. As mentioned above, accounts owned by grandparents or other relatives will also be excluded from determining federal financial aid eligibility. Financial aid eligibility differs between FAFSA and CSS profile There are also schools that use the College Scholarship Service, or CSS, Profile (primarily private schools) to calculate their financial aid packages. The CSS Profile's formula to calculate aid differs from FAFSA's. For instance, the CSS Profile asks for all 529 accounts owned by the beneficiary's parents, whereas the FAFSA only counts 529 accounts for which the student is the beneficiary. Moreover, the CSS Profile is customized by the institution, so each school can have its own formula to calculate its aid packages. While each school that uses CSS Profile information applies its own standards, this calculator estimates what your family might be expected to pay. ___ This article was provided to The Associated Press by Morningstar. For more personal finance content, go to
