Federal budget sequestration that took effect March 1 will affect student aid programs and university research, but the precise impact remains unclear, according to an article in The Chronicle of Higher Education. The affected student aid programs include the Supplemental Educational Opportunity Grant and Federal Work Study. However, because the U.S. Department of Education has not yet notified institutions of how much funding will be cut from these programs, institutions may be required to send students revised financial aid letters for the 2013-2014 year once the amount of the cuts is known.
Fear of the sequestration has already affected federal research grants, as it prompted agencies to preemptively reduce the amount of grant money they award. The sequester-related reductions are expected to total $12 billion in 2013 and $95 billion over the next nine years.
The article also describes cuts to college preparatory programs of nearly $60 million, and a $450 million cut from federal employment and training programs. However, the precise allocation of the $450 million cut has yet to be identified.
