University administrators warned that the so-called “sequester” cuts may lead to a decrease in research funding, jobs and financial aid that is supported by the government.

 “Now, the [Pell] grant has much less of a role in influencing this income inequality because it hasn’t increased at the same rate as the cost of tuition," one professor said.

The cuts could potentially slash millions of dollars in financial aid grants for Cornell.

Disagreeing with a study that asserted that Cornell, along with other top institutions, is on a “financially unsustainable path,” a University administrator said that Cornell is a stronger institution now than it was before the recession four years ago.

Students with work-study financial aid packages will need to work more hours each year when reductions to Cornell's financial aid program begin in Fall 2013.

Over the summer Cornell announced an unfortunate revision to its financial aid policy. The revision was heralded under the headline of a University press release entitled, “Cornell reaffirms its commitment to need-blind admissions and robust need-based aid.” The announcement outlined Cornell’s decision to eliminate the no-loan guarantee for students whose family income falls between $60,000 to $75,000 while increasing the loan burden for those students with family incomes from $75,000 to $120,000. Readers of Cornell’s press release might have been hard pressed to understand the true impact of these changes, as it was buried deep beneath paragraphs emphasizing Cornell’s successes in improving its financial aid offerings. 

President David Skorton defended changes to financial aid announced this summer.

Cornell will no longer provide loan-free aid packages to all students whose parents make under $75,000 a year.

Thousands of Cornellians may face higher debt loads if a bill that supports subsidized Stafford loans expires on July 1, which will cause interest rates on the loans to double from 3.4 to 6.8 percent.