As budget battles unfold in Washington, students across the country are bracing for the ripple effects. Proposed 2025 federal budget cuts under the Trump administration could significantly alter the landscape of student financial aid, potentially stripping low-income and first-generation students of essential support.
The proposed cuts include reallocating funds from the Pell Grant reserve, which directly supports low-income students, and eliminating Supplemental Educational Opportunity Grants and federal work-study programs entirely.
While the administration frames these measures as a path to reduce the federal deficit, education advocates warn they could have devastating consequences.
“It is standard practice for us to monitor any potential changes to federal financial aid programs to determine what impacts those changes may have on financial aid availability for students,” said Shannon Shepard of UNC Asheville’s financial aid department.
Alongside reductions in aid programs, the proposed dismantling of the Department of Education and downsizing of federal staff raise further concerns. Experts warn this could lead to delays in aid disbursement, increased clerical errors and confusion for students already navigating a complex system.
The transition of student loan servicing to the Small Business Administration adds another layer of uncertainty. Students may face changes in repayment procedures, reduced access to borrower support, and shifting expectations with little communication or clarity.
Multiple attempts were made to contact federal representatives and local financial aid offices to clarify what these changes mean in real time. Responses were sparse and often vague.
“No, we have not received any cuts or notices to cut any aid we currently receive for students,” Shepard said.
The lack of transparency from both federal sources and university-level offices leaves students questioning how and if they will be able to continue their education.
“As a first-generation college student, financial aid makes it possible for me to attend school,” said UNC Asheville student Brayden Giffin. “Without financial aid, I can’t afford to finish my degree. Getting rid of financial aid and federal assistance will remove the already lacking equity of higher education. This disproportionately affects minority communities, with a goal to keep the poor where they are. This is not about saving federal money; this is about classism, racism and sexism.”
Critics argue the potential elimination of these programs isn’t just a financial issue. It’s a social justice issue, one that could widen the already stark equity gap in higher education.
If passed, the proposed budget cuts and restructuring would not only alter access to aid, but reshape the very infrastructure of how federal support is delivered, potentially for years to come.
