Penn State may see a decrease in the federal government's allotment of campus-based funds if newly proposed legislation is passed.

The legislation, which is expected to be finalized as an official proposal in November, would shift the nationwide $1.7 billion federal allotment from well established schools like Penn State to newer institutions like community colleges.

"The argument is that because they are growing in terms of size, they should be getting more campus-based aid," said Don Heller, associate professor and senior research associate with the Center for the Study of Higher Education.

Heller said campus-based aid contributes to three major programs: Federal Perkins loans, which are need-based and offer students a low interest rate; Federal Supplemental Educational Opportunity Grants, which give money to students with exceptional need; and Federal Work Study, which provides jobs for undergraduates.

The legislation proposes an amendment to the Higher Education Act of 1965, which is up for reauthorization this year.

The currently employed formulas of the act date back to the 1970s.

Heller said although the formulas are dated, they work in favor of well established institutions, and changes would most likely take money away.

Heller said advocates for changes in the present system are states like California, Arizona and Texas, where college enrollment is growing, and new institutions are also advocates for change.

Derek Dureka, Council of Commonwealth Student Governments governmental affairs director, said the new legislation, if passed, would "punish schools like Penn State."

Dureka said he is in favor of redistributing funds within the Pennsylvania school system rather than nationally.

Dureka is currently organizing a trip to Harrisburg with students from other Penn State campuses to speak with congressmen about this new legislation.

"I want to feel them out," Dureka said. "I want to get a better perspective."

The Executive Administrative Dean at Tufts University, Wayne Bouchard, said he would expect most people to encourage the changes.

"I always think you need to support changes that are driven by fairness and equity," he said.

Bouchard said Tufts University would not be affected if the proposed legislation were passed.

He said the ideal situation for all institutions would be for greater funding.

"More money needs to be put into the system," Bouchard said. "Everyone is dealing with tight budgets, so it may not be a reality."

Anna Griswold, assistant vice provost for enrollment management and student aid, said specific details about the legislation are not yet known, but she is watching the process closely.

She also said the problem lies in the overall lack of funds the government allocates to higher education.

"There is no new money that the federal government put into these funds," Griswold said. "It's a matter of moving money around."

Griswold said she anticipates a loss of funds in the future if the new legislation is passed.

"The risk is great," Griswold said. "I can see us possibly losing."