Federal Direct loan origination fees to increase July 1, 2013

Loan origination fees will increase for loans with a first disbursement made on or after July 1, 2013.  The increased rates are as follows:

• Federal Direct Subsidized and Unsubsidized loans fees increase from 1.0% to 1.051%.
• Federal Direct Parent and Graduate PLUS loan fees increase from 4.0% to 4.204%.

Grants affected by Sequestration

TEACH Grant:  All awards with a first disbursement after March 1, 2013 are subject to a 6.01% across-the-board reduction, due to sequestration.  For example, if the award is $2,000 based on the award schedule, the amount will be reduced by 6.0% or $120.  The new award amount will be $1,880.

Iraq-Afghanistan Service Grant:  All awards with a first disbursement after March 1, 2013 will be reduced by 10% from the award amount for which the student would otherwise have been eligible to receive.    

New legislation impacts federal aid programs

Due to the Moving Ahead for Progress in the 21st Century Act (enacted July 6, 2012), a new borrower on or after July 1,2013 cannot receive subsidized loans for more than 150% of the published length of the borrower's educational program.  For example, if a student is enrolled in a 4 year program, they can receive 6 years of subsidized loans, if eligible.  The law also states that a borrower who becomes ineligible for subsdized loans because of the 150% limit is ineligible for interest subsidy benefits on all subsidized loans first disbursed to that borrower on or after July 1, 2013.

Due to the Consolidated Appropriations Act, 2012, the following federal programs were impacted:

• Federal Pell Grant Duration of Eligibiity (beginning with the 2012-13 award year) – Eligibility to receive a federal Pell grant is now limited to 12 semesters (or its equivalent) for all Undergraduate eligible students and includes all years of the student's receipt of federal Pell grant funding.  
• Grace Period Interest Subsidy – Temporary elimination of interest subsidy provided on Direct Subsidized loans during the six month grace period provided to students when they are no longer enrolled in at least a half-time basis.  This change will be effective for new Direct Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014.

Federal aid once degree requirements are met

A student who completes the academic requirements for a program, is not eligible for further additional federal aid funds for the program.   

Looking for semester employment?

New listings for jobs continue to be updated on eRecruiting. New fall 2013 students will have access beginning August 1, 2013.