Should college loans lose federal subsidies?

Clare McCann was quoted in the Victoria Advocate about President Trump's proposed budget and how it would affect student aid. 

Drastic changes are proposed to student aid in the budget, said Clare McCann, senior policy analyst at New America's education policy program.

Specific cuts can be seen for undergraduates and low-income students, she said.
Loans for low-income students would accrue more debt, she said.

"We are concerned about this because it's targeting low-income (students) who do not have a degree," McCann said. "If they are not finished, they are leaving with more debt than they otherwise would where they could repay that debt comfortably."

Although the budget is saving money, those savings are not reinvested elsewhere in education, McCann said.

A work study program being cut in half limits the amount of money each school will receive, she said.

Although the federal work study money is not well targeted to the most needy students, schools focus on the program to help students pay for college.

"Research shows for low-income students, working 10 or 15 hours a week can provide financial and educational benefits," she said.

A budget based on "cuts for the sake of cuts" is making the situation difficult for students paying for school, she said.