<p>[Detailed</a> Analysis of Federal Education Funding Cuts - Democratic Underground](<a href=“Democratic Underground Forums - Request error”>Detailed Analysis of Federal Education Funding Cuts - Democratic Underground)</p>
<p>Obama’s budget proposes to eliminate several types of federally-funded merit scholarships, including the Byrd scholarships. The Byrd scholarships are funded by the Federal government, and then passed onto the states to select students. The states are required to only consider merit and not financial need. The administration is trying to shift money around so that the greatly expanding need for Pell grants can be met.</p>
<p>For the same reason, the administration is proposing to eliminate Federal subsidies of loans for graduate and professional student students. The loans would still be available, but the interest would start to accrue immediately. </p>
<p>Therefore, anyone now in grad school who will also be in grad school next semester should take out the maximum allowed amount ASAP, because they won’t be able to get subsidized interest loans in a few months.</p>
<p>These changes would take effect with the start of the new budget this summer. States have been accepting Byrd scholarship applications, but with a warning that they will only be granted if the Federal funds are allocated.</p>
<p>With the current make-up of Congress, any budget cut proposed by Obama (that does not involve defense or ethanol subsidies) immediately sails through, with little debate.</p>