Harvard May Lose Some Federal Aid

A Bush administration proposal to reallocate funding for certain financial aid programs could threaten more than $6 million of Harvard’s federal aid if Congress approves the plan.

The richest universities in the Boston area stand to lose millions of dollars in campus-based financial aid under the proposal unveiled last month by the U.S. Department of Education (DOE).

Those institutions, including Harvard, Boston University and Northeastern University, have long been protected by federal legislation guaranteeing their historic share of the aid. But newer schools of equal and larger sizes, which continue to receive far less than their New England counterparts, have called on the DOE for more equitable funding.

The money in question, $3.3 billion in campus-based financial aid, is allocated to universities which then distribute the funds to students as part of their financial aid packages.

The federal government’s $6.1 million award to Harvard represents roughly 8 percent of the College’s financial aid budget this fiscal year. While this aid varies year to year based on an allocation formula, Harvard consistently receives a large chunk of the total awarded by the federal government.

But the University of California, Los Angeles, with an undergraduate population four times larger than Harvard’s, received just $5.7 million in campus-based financial aid this fiscal year. Most large universities outside New England face similar situations, according to DOE statistics.

How much Harvard or its peer institutions might lose under a reallocation of funding remains unclear, but each university could see cuts of several million dollars. A Harvard financial aid initiative announced last month, which eliminated tuition for students whose parents earn less than $40,000, cost the University $2 million.

Harvard financial aid officers did not return requests for comment last night.

Kevin Casey, Harvard’s top lobbyist in Washington, D.C., said yesterday the University was more interested in growing the entire pie than protecting its own slice. But he declined to take a position on the reallocation of campus-based financial aid.

“What we’re going to do is watch as this issue unfolds and communicate with people on the Hill as we go along,” Casey said.

University President Lawrence H. Summers could not be reached for comment on the issue last night.

The Bush administration’s proposal for next fiscal year’s DOE budget calls the current distribution of campus-based aid “disproportionate” and “inequitable.” It asks for the revision of allocation formulas as soon as next school year.

The awards, however, have already been decided for next fiscal year, which corresponds to next school year. The government will release the figures to the public on April 1.

Any change in those formulas would require Congressional approval, and reaction on Capitol Hill has largely split along regional lines. New England Sen. Edward M. Kennedy ’54-’56, D-Mass., and Sen. Judd Gregg, R-N.H., have both said they oppose the reallocation of campus-based financial aid.

Kennedy’s alma mater—Harvard—and several other universities in his constituency would almost certainly face a cut in their funding if the aid were to be reallocated. Boston University received $7.6 million this fiscal year, while Northeastern University gained $7.1 million. Those figures represent some of the largest allocations in the country.

In a statement last week, Kennedy criticized the broader White House financial aid initiative, which places greater emphasis on student loans.

“This Republican plan hurts students and helps banks rake in bigger profits,” Kennedy said in the statement.

Gregg, who chairs the Senate committee which oversees financial aid allocation, has repeatedly said the funds are correctly distributed.

Casey, who has been representing Harvard in Washington, D.C., said the political atmosphere in the capital has been more contentious in recent months.

“Elections years are always where the rhetoric becomes more heated,” he said.

And he said the University’s interests were not necessarily a priority among legislators.

“Members of Congress aren’t necessarily moved by impacts—positive or negative—on Harvard.”

—Staff writer Zachary M. Seward can be reached at seward@fas.harvard.edu.