VSAC tells Appropriations committee federal student-aid changes will reshape assistance; seeks 3% base increase

Scott Giles, president and CEO of the Vermont Student Assistance Corporation, told the House Appropriations Committee on Feb. 3 that major federal changes to student financial aid will reshape borrowing limits and program accountability and that VSAC seeks state support to help Vermont students navigate the transition.

Giles said the reconciliation bill imposed new caps on federal borrowing that will create gaps for some students. "Parents will now only be able to borrow for each student up to $20,000 a year or $25,000 a year, with a student lifetime cap $60,000," he said, and added that graduate- and professional-program caps have also tightened. He warned that the federal definition of "professional" programs—drawn from an older Higher Education Act classification—has left nursing outside the higher…