Two college students sit outside, enjoying the sun.Two college students sit outside, enjoying the sun.

2012-2013 Federal Updates

Congress passed new regulations that affect Federal Direct Stafford loans, Federal Pell Grants and Verification for the 2012-2013 award year.  A summary of changes are as follows:

Important changes regarding Federal Direct Stafford loans

Beginning with the 2012-2013 academic year, the US Department of Education has made some important changes regarding Federal Direct Stafford Loans for both undergraduate and graduate students.

  • The interest rate for Federal Direct Subsidized Loans will change from 3.4 percent to 6.8 percent beginning July 1, 2012.  Unsubsidized Stafford loans will remain at a fixed 6.8 percent rate.   
    • Interest subsidy during the six-month grace period is eliminated for new Stafford Loans made on or after July 1, 2012. The repayment period still begins 6 months after the student is no longer enrolled at least half-time, but interest that accrues during those six months will be payable by the student rather than be subsidized by the federal government.
    • Effective for loans made for periods of enrollment beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans.  The annual loan limit for graduate and professional students remains unchanged at $20,500, but this amount will now be limited to Direct Unsubsidized Loans.

Important Changes Regarding Federal Pell Grant and Verification

Beginning with 2012-2013 academic year, the US Department of Education has made some important changes regarding the Federal Pell Grant Program and students selected for Verification.

  • The number of semesters a student can receive a Federal Pell Grant has changed from 18 semesters to 12 semesters.
  • The Maximum amount of the Federal Pell Grant will remain the same for the 2012-2013 school year, however, the estimated family contribution (EFC) in which to receive a Federal Pell Grant has changed from a maximum EFC of 5,273 to a lower EFC of 4,996.
  • Students selected for Verification for 2012-2013 who have not used the IRS Data Retrieval when completing their FAFSA will be required to submit a Tax Return Transcript from the IRS to our office. The Financial Aid Office can no longer accept copies of the Federal Tax Return (1040, 1040A, 1040EZ, Etc.)