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
President Obama recently signed into law the Budget Control Act of 2011.
This action eliminates the in-school loan interest subsidy for graduate and professional students. Federal Direct Subsidized Stafford loans will no longer exist as of July 1, 2012. All Stafford loans from that date forward will be Federal Direct Unsubsidized. The interest will begin accruing upon disbursement of the loan proceeds. This does not impact the loan limits or the interest rate.
Direct Subsidized Stafford Loan Grace Period for 2012-2014
Students borrowing a Subsidized Direct Stafford 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 during the six month grace period provided to students when they are no longer enrolled on at least a half time basis. Like the Unsubsidized Direct Stafford Loan the interest will accrue during grace periods. During deferment periods the interest on Subsidized Direct Stafford 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.