Tuition increase puts fees at $36,700, and federal spending cuts will affect work-study and some grants
(The Beacon)
By Kelsey Thomas, Staff Writer thomask15@up.edu
UP students may begin to feel the strain of the sequester in coming semesters. The sequester is a series of federal spending cuts passed as part of the Budget Control Act of 2011. They were set to take place Jan. 1, 2013, but were delayed until March 1. University of Portland Director of Financial Aid Janet Turner explained to The Beacon the financial effects this will have on students.
Q: Will this impact Federal Work - Study for UP students?
A: Federal Work-Study will see an estimated five percent cut during the first year of sequestration (2013-14). We don't have final numbers to predict the exact number of jobs that might be impacted, but it could be as many as up to seven positions. However, most students who work on campus do not earn Federal Work-Study. They earn institutional student employment funds, which are not impacted by the sequestration. We won't know what our final allocations will be until April.
Q: Will there be a reduction in Federal Supplemental Educational Opportunity Grants (SEOG) available?
A: Federal SEOG funds are awarded to the neediest of students, and again while our allocation may be cut by up to five percent, we don't know the final impact at this time. But we may see some reductions of awards beginning in 2014-15 if the sequestration continues.
Q: Will the same Federal Direct Loans still be available to students?
A: The Federal Direct Loans are still available to students. They will just experience a small increase in the origination fee that the Department of Education charges. Federal Direct Loan origination fees are expected to rise from one to 1.05 percent (for loans disbursed on or after March 1, 2013). Federal Direct PLUS loan origination fees are expected to rise from four to 4.2 percent (for loans disbursed on or after March 1, 2013).
Q: How else could the sequester affect students?
A: Federal Pell grants are protected from sequestration for the first year. In years two through ten (award year 2014-15 to award year 2022-23), Pell will be subject to cuts as a result of sequestration (We haven't been notified what those cuts might look like yet).
TEACH Grants - We are less clear on what will happen to these grants, but they will affect any disbursements made on or after March 1, 2013 (We are awaiting further information from the Department of Education about this program).
Other factors that may impact students might include other federal grants, such as the National Science Foundation grants that some of our professors apply for, which could be impacted in future years.
Tuition Increases 4.5%
Tuition for the 2013-2014 school year has been increased 4.5% to $36,700, one of the lowest increases in University history, according to a letter from President Beauchamp to UP parents.
The increase in room and board vary, depending on the type of room, ranging from 3.8% or $392 to 4.5% or $546.
In the letter, Beauchamp said the Administration is committed to keeping UP tuition affordable and the increase is comparable to other private and Holy Cross institutions.
"I fully appreciate the tremendous investment made by our students and their families in coping with these costs," Beauchamp said in the letter. "All of us here take these matters very seriously."
