Students may end up losing their federal grants and loans because of a bill recently approved by the Congress on Nov. 20.

The bill eliminates a provision that would have barred the Department of Education from changing the formula for student financial aid eligibility on the Free Application for Federal Student Aid, said Roberta Johnson, associate director of financial aid.

The exact impact is uncertain, but if the new formula had gone into effect last year, it would have prevented about $270 million from being spent on Federal Pell grants, and there are similar projections for this year, according to the New York Times. Although many students might receive smaller grants if the bill takes effect, anywhere from 84,000 to 90,000 students could lose their Pell Grants. Nearly 100,000 students could lose their federal grants entirely.

“Every single student who filled out a FAFSA form could be affected,” Johnson said.

She said the formula would be changed to make families filling out the FAFSA look like they have more money to contribute to their child’s college education — at least on paper. Students would appear to have less financial need and could miss out on subsidized loans, grants and work-study programs, Johnson said.

“This will have ramifications and ripple effects all along the way,” she said.

Families filling out the FAFSA who make less than $15,000 a year now subtract 8 percent of their income tax from their adjusted growth income. Families who make more than $15,000 subtract 7 percent. The new bill could change the numbers to 3 and 4 percent respectively, Johnson said.

The changes to a student’s financial status won’t take effect this year, however.

“Students may still be protected for one more year,” Johnson said. “Nothing that I’ve read indicates that that will happen in the ’05-’06 school year.”

John Parker, director of College Consulting Services at Iowa Student Loan, said it is unclear whether this bill will lead to a change in students’ financial status.

“The door has been opened back up to let this occur,” he said.

He said there would be a negative effect on dependent students in 49 of the 50 states, with Connecticut being the exception.

Independent students in 35 of the states would also be negatively hit.

“The formula change would affect federal eligibility, state eligibility and institutional eligibility,” Parker said.

“It’s not clear what will happen and when,” he said.