Recent Changes to Financial Aid
Limitation on Number of Semesters of Pell Grant Eligibility
Beginning with the 2012-2013 FAFSA all students who are Pell Grant recipients (including students who have previously received the Pell Grant) have a limit of 12 full-time equivalent semesters (600%) of eligibility. After 12 full-time equivalent semesters, eligibility ends. Students can check their eligibility used by going to http://nslds.ed.gov
Important Announcement for Graduate & Law Students Effective July 1, 2012
The Budget Control Act of 2011 eliminates the in-school loan interest subsidy for graduate and professional students. As of July 1, 2012, Direct Subsidized Loans no longer exist, but only Direct Unsubsidized Loans. The interest will begin accruing upon disbursement of the loan proceeds. This loan change does not impact the loan limit nor the interest rate.
Direct Subsidized Stafford Loan Grace Period for 2012-2014
Students borrowing a Direct Subsidized Loan between 7/1/12 and 7/1/14 (a two year period) should be aware that for this two year period the interest on these loans, though in all prior years was paid by the U.S. Department of Education, will not be paid by the government during the six month grace period provided to students when they are no longer enrolled at least half time. Like the Direct Unsubsidized Loan, the interest will accrue during grace periods. If the borrower chooses not to pay the interest that accrues during the grace period, the interest will be added to the principal balance. During deferment periods, the interest on these Direct Subsidized Loans will still be paid by the U.S. Department of Education.
Maximum Eligibility Period to Receive Direct Subsidized Loans
As of July 1, 2013, a new provision was added to the Direct Loan statutory requirements that limit a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150 percent of the length of the borrower’s educational program. Under certain conditions, the provision also causes first-time borrowers who have exceeded the 150 percent limit to lose the interest subsidy on their Direct Subsidized Loans.
Note: Only first-time borrowers on or after July 1, 2013, are subject to the new provision. Generally, a first-time borrower is one who did not have an outstanding balance of principal or interest on a Direct Loan or on a FFEL Program Loan on July 1, 2013.
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