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It outlines proposed consolidation of about 57 school aid programs into two block grants and describes potential impacts on low-income, minority, and middle-income students, including cuts or restrictions to Pell Grants and changes to Guaranteed Student Loans and National Direct Student Loans. The article also notes concerns that tuition tax credits could strain education funding and raise borrowing costs.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/vol19-no40-february-171981-graphics-budget-chief-proposes-huge-student-aid-cuts/410981/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/vol19-no40-february-171981-graphics-budget-chief-proposes-huge-student-aid-cuts/410981.png","ImageObject",300,407,{"name":92,"@type":93},"McQueen","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-09-28",true,{"@type":102,"interactionType":103,"userInteractionCount":39},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What major changes does the budget chief propose for federal education funding?","Question",{"text":112,"@type":113},"The proposal seeks a 20% reduction in support by 1982 and consolidates many aid programs into two block grants with few strings attached.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How would the plan affect students receiving Pell Grants?",{"text":117,"@type":113},"The plan would cut about 286,000 students from the Pell Grant program in 1981 and 1982, and would restrict eligibility by limiting Pell Grants to families making less than $25,000 a year.",{"name":119,"@type":110,"acceptedAnswer":120},"What interest-rate changes are described for student loans under the Stockman plan?",{"text":121,"@type":113},"The article states that students and parents would pay regular market interest rates (around 20%), and it would also eliminate in-school interest subsidies. It further describes phasing out federal support for NDSLs over four years.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},410981,1790893993,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":39,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":44,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},5909890329169,"https://ap-avatar.wpscdn.com/davatar_9964176cb1d06d4a9deccf72a44ae3dc","SECOND CLASS POSTAGEPAID AT DENVER,COLORADO  \nsmo587Serlais Prccesz1ngUniversity Mcrofilae300 North Zeeb RoadAnn Rrbor,MI48105  \nVol.19 No.40  \nFebruary 17,1981  \nGraphicS  \nCollege Press Service  \nA margin is provided on the left hand side of the copy for eding marks.Word counts are approximate.Body copy is set at a maximum 70 spaces per line.  \nNewspapersubscribingto CP arenited o thetuluseoft he contentsi this packet Ediors are encouragedto edithe copytofitheirneds.However,weaskthatCPS be crediedwhen credit is due.  \nIndex  \nTHE AXE HITS ACADEME,President Reagan has warned that everyone will pay a price incutting the federal budget.Colleges got a preview of their bill:drastic cuts \"forPell Grants,the undoing of the Middle-Income Student Assistance Act,a phasing outof NDSLs,and changes in GSLs that could leave students paying 20%interest rates.It could,says one lobbyists,\"wipe students out\"(850 words)PG.1  \nTOXIC SHOCK SYNDROME IS FADING AWAY,(530 words)PG.4  \nMOVE OVER MAYTAG REPAIR MAN,America's loneliest people,says a new studv,arestudents(210 words)PG.5  \nBUDGET CHIEF PROPOSES HUGE STUDENT AID CUTS  \n20%INTEREST RATES;CUTS FOR MINORITY AND MID-INCOME STUDENTS;AN END FOR N,D,S,L,S'REVERSE ROBIN HOODING'  \nby Helen Cordes  \nWASHINGTON,D.C.(CPS)--Making good on promises to try to re-structure and cut backon federal education programs,the Reagan administration wants to reduce its supportfor education by 20 percent by 1982,and in the process sharply decrease financialaid to disadvantaged,minority,and middle-income students.  \nThose are the highlights of budget recommendations made by Office of Managementand Budget chief David Stockman in a confidential preview obtained by the WashingtonPost.  \nThe preview,distributed to members of congressional budget and appropriationscommittees,advocates undoing much of the Middle Income Student Assistence Act --a measure that took the Carter administration two years to navigate through Congress --  \nMore on next page  \nContinued from previous page  \nand replacing most college programs with two huge block grants.  \nOne legislator,Rep.Carl Perkins(D-Ky),chairman of the House Education-Laborcommittee,vowed to \"use his last breath,\"to defeat the budget cuts,says one ofthe congressman's aides.  \nSpecifically,Stockman wants to consolidate some 57 school aid programs intotwo \"block grants,\"which would be given to state and local authorities with fewstrings attached.The local politicians could spend the education grants largely asthey saw fit.  \nVirtually all the special aid programs for low-income and minority studentswould be included in the block grants.Among the programs are $3 billion in Title Iaid,$1 billion in handicapped student aid(which helps pay for making campusesarchitecturally accessible to disabled students),and money to help desegregationbilingual education and school libraries programs.  \nMillions of other students will be touched by Stockman's recommended cuts inGuaranteed Student Loan(GSL),National Direct Student Loan(NDSL)and Pell Grant(formerly Basic Educational Opportunity Grants)financial aid funding.  \nUnder the Stockman plan,in which the government underwrites loans to studentsand parents at low interest rates,money would be provided only after remainingsources of aid were accounted for in determining a student's need.  \nThe government would also drop\"in-school interest subsidies.\"Under thecurrent system,students repay back loans for tuition at nine percent interest rates,while the government pays the difference between nine percent and the regularinterest rates banks charge other customers.  \nIf the Stockman plan is approved,students and parents will have to pay theregular market interest rates on the loans,which at this writing is at about 20percent.  \nStockman,whose suggestions reportedly will be incorporated in President Reagan'sbudget proposal to Congress,also wants to cut entirely federal support of NDSLs.Now the four percent loans are awarded to students when the st","cbCaihmoyrIAaQwd","https://ap.wps.com/l/cbCaihmoyrIAaQwd","pdf",2157325,"English","# Budget Chief Proposes Huge Student Aid Cuts\n## Block grants and reduced federal support\n## Impact on Pell Grants and student loans","[{\"question\":\"What major changes does the budget chief propose for federal education funding?\",\"answer\":\"The proposal seeks a 20% reduction in support by 1982 and consolidates many aid programs into two block grants with few strings attached.\"},{\"question\":\"How would the plan affect students receiving Pell Grants?\",\"answer\":\"The plan would cut about 286,000 students from the Pell Grant program in 1981 and 1982, and would restrict eligibility by limiting Pell Grants to families making less than $25,000 a year.\"},{\"question\":\"What interest-rate changes are described for student loans under the Stockman plan?\",\"answer\":\"The article states that students and parents would pay regular market interest rates (around 20%), and it would also eliminate in-school interest subsidies. It further describes phasing out federal support for NDSLs over four years.\"}]","Vol.19 No.40 - February 17,1981 - GraphicS - Budget Chief Proposes Huge Student Aid Cuts | PDF",1790587009,23]