Below is a list of changes to certain federal student aid programs including Direct Loans and Pell Grants. All changes are effective July 1, 2012.
- Graduate students will no longer be eligible Direct Subsidized Loans
Stafford loans lent to graduate students beginning with the 2012-2013 academic year will no longer be subsidized. While the total annual loan limit that students can borrow will remain unchanged at $20,500, the full amount will be unsubsidized, accruing a 6.8% interest while in school.
- Elimination of origination fee rebate on Stafford Loans and Parent & Grad PLUS loans beginning with the 2012-13 academic year.
This change will result in a 1% origination fee for all for Direct Stafford Loan (subsidized & unsubsidized) borrowers. A 4% origination fee will be assessed for all Parent PLUS and Graduate PLUS Loan borrowers.
- Federal Pell Grant eligibility will now be restricted to a maximum of 12 full-time semesters (600%). This will include all prior semesters of Pell Grant received at all institutions the student attended. Pell Grant duration eligibility for a student is determined by adding together each of the annual percentages of a student’s scheduled award that was actually disbursed to the student. A student enrolled full-time throughout the Fall and Spring semesters would earn 100% of their Pell Grant each year.