Students financing their education through federal grants and loans could face funding strains if President Barack Obama’s proposed budget — including billion-dollar cuts to higher education programs — is approved by the U.S. Congress.

In his budget, which was released yesterday, Obama mapped out cuts to both Pell Grants for undergraduate students and interest subsidies for graduate student loans. And as the state grapples with a proposed 3 percent tuition increase, students said they can’t afford dwindling support from the federal government.

Cuts to the Pell Grants — which are offered to more than 9 million low-income students across the nation every year — include ending a policy that allows students to collect two grants in one year: one for the fall and spring semesters and one for the summer.

But while the number of Pell Grants offered would be cut, Obama’s budget doesn’t change how much money students actually receive: The maximum amount awarded for a Pell Grant remains at $5,550 under his recommendations.

According to Sarah Bauder, assistant vice president of the university’s financial aid office, nearly 5,700 undergraduate students at this university benefited from more than $21.5 million in Pell Grants this year.

But Bauder said the summer Pell Grants, which have only been in effect for the last year, didn’t impact enrollment rates of last summer’s academic sessions. Out of the 12,000 students who enroll for summer courses, fewer than 100 financed it through a Pell Grant, she wrote in an e-mail.

Unlike loans, Pell Grants do not need to be repaid. Students who receive the funding are deemed eligible through the Free Application for Federal Student Aid form. The amount of money awarded is based on financial need, the cost of additional fees and whether the student is part-time or full-time.

For some students who rely on federal funding to complete a degree, such as sophomore government and politics major Bobby Taylor, the cuts to the number of Pell Grants available were alarming.

“A decrease in the [maximum] Pell Grant amount will no doubt … be another hindrance and limitation for students and the education of their choice,” Taylor said. “The Pell Grant was designed to give opportunity for those who qualify, and I know that if it is reduced, then students like myself all over the United States will see the difference.”

Obama’s budget could also affect graduate student loan holders by reducing loan subsidies while they are still in school. For some graduate students, the government pays the interest on federal loans while they are still in school. But under the new plan, graduate students would have to pay back interest accrued while they were in school in addition to post-graduation loan payments.

Bauder said if such a measure is passed, the government should make efforts to reduce interest on student loans to help offset added financial burdens.

“Graduate students receive very little need-based aid from the federal government outside of loans,” she wrote in an e-mail. “I would hope that if the subsidies are reduced, the federal government would also reduce the interest rate.”

Graduate Student Government President Anna Bedford said Obama’s proposed cuts, combined with an already poor economy, could create a perfect storm for graduate students struggling to earn a degree.

“This new budget proposal may be the most difficult for Ph.D. students who sometimes take 10 years to finish their degree,” she said. “Graduate students don’t have secure funding from year to year, and there are no guarantees of a job upon graduation in this economy.”

Though in-state undergraduate tuition was frozen for four years, graduate tuition continues to rise. Bedford noted that many graduate students are international, meaning they do not qualify for many federal loans.

Although it is possible the proposed budget could endure further cuts as it makes its way through Congress, Obama has repeatedly pledged a commitment to making higher education accessible.

“In the United States of America, no one should go broke because they chose to go to college,” he said in his Jan. 25 State of the Union address.

Despite such efforts to keep the value of Pell Grants high, some students said any measure that makes it harder for students to afford an education is counterproductive.

“Every student should have that opportunity to go to a school, if deemed accepted, and should not have to turn down a great education solely because financial circumstances do not permit them,” Taylor said.

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