A bill that would eliminate $14.3 billion in federal student loan funding is scheduled for a vote later this month, and Penn State students could lose loan opportunities if the bill is passed.

The Deficit Reduction Act aims to reduce the national deficit and is meant to "reign in" annual spending but is not necessarily going to a specific program, said Don Seymour, spokesman for Rep. John Boehner, R-Ohio.

Seymour said the bill would create savings within student loan programs that could lead to more money for students each year. Increases would be smaller than in the past.

The Perkins Loan and the Federal Family Educational Loan at Penn State could both be affected by the new legislation.

The Perkins Loan is usually given to about 3,500 Penn State students a year and is a combination of money students pay back to the university and money the government puts into the program. Funding cuts would not allow the government to put any new money into the program, said Ralph Hosterman, Penn State student loans and scholarships director.

"There will not be enough money coming back into the program to give out to the new incoming students, and the program will not be able to keep up with the price of education," Hosterman said.

Hosterman said the bill affects all universities, but Penn State has one of the lowest default rates when compared to other Big Ten schools.

"The thing that is helping us the most is the fact that our students tend to pay back their loans, but there is still a good chance that the program will eventually be dropped if funding is continued to not be given," Hosterman said.

The Federal Family Educational Loan is the primary target for the cut in funding.

Executive Student Aid Director Anna Griswold said the loan program is based on lender donations, but the amount paid back to lenders will now be reduced.

"I imagine that the lenders are very concerned about this new legislation and that they are going to continue to carefully watch it," Griswold said.

It's still unknown how much students will be affected by Federal Family Education Loan cuts.

"There will not necessarily be a direct effect on the students, but there will be an indirect effect in the future," Griswold said.

Griswold said students can use other funding sources, and she believes students will still be able to receive the loan funding they will need to attend college.

However, some students are still concerned.

"I think it is a horrible idea to have a cut in the student loan funding because college is really expensive, and I believe that a lot of students are going to be affected by this," Emmeny Beadle (sophomore-division of undergraduate studies) said.

PNC Bank, a primary Federal Family Educational Loan lender, plans on staying as involved in the program as it is today. A representative said there would be no drastic capital interruption if the legislation were passed.

"We will continue to make sure that educational financing is still available for students, but there is a possibility that there will be a change in the benefits that we are able to offer to the students," said Tom Lustig, PNC Bank's vice president of marketing for education loans.

Congress will discuss the legislation and decide on its final form before a mid-December vote.