Program Changes


There are significant changes to federal and state aid programs.  These changes greatly impact our eligible financial aid applicants and we highly recommend you read and understand these changes as they may affect you.

Changes for 2013-2014 applied to the following programs:

Changes to Title IV Aid

The Department of Education announced the across-the-board budget cuts known as sequestration on the Title IV student financial aid programs as a result of the Budget Control Act of 2011 (the sequester law).  Beginning October 1, 2014 the information below provides information on the required increases to the Direct Loan fees and the required reduction to the TEACH Grant program.

The loan origination fee percentages for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans (for both parent and graduate and professional student borrowers) will change for loans that are first disbursed on or after October 1, 2014 and before October 1, 2015.

Direct Loan Fees for 2014-2015


Loan Type Date Disbursed Loan Fee Percent Fee Example
Direct Subsidized and
Unsubsidized Loans
First disbursed on or after 10/1/2014
and before 10/1/2015
1.073 $59.01 on a $5,500 loan
Direct PLUS Loans
(Parent and Grad/Prof Student)
First disbursed on or after 10/1/2014
and before 10/1/2015
4.292

$429.20 on a $10,000 loan


A TEACH Grant that is first disbursed on or after October 1, 2014 requires a reduction of 7.3 percent from the award amount for which the student would have been eligible.

Top

TEACH Grant Awards 


Award Year Impacted Award Max Award Amount % Reduction from Award Amount Dollar Reduction Amount Adjusted Max Scheduled Award Amount
2014-2015
First Disbursed on or after 10/1/2013
and Before 10/1/2014
$4,000 .089% $35.60 $3,964.60
First Disbursed on or after 10/1/2014
and Before 10/1/2015
$4,000 7.30%

$292

$3,708.00

Top

Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers

Effective on or after July 1, 2013, first-time Direct Stafford Subsidized Loan borrowers will have a time limitation for subsidized loans.  Subsidized loan eligibility will be limited to 150 precone of the published length of your degree program.   After you have reached the the maximum subsidized loan eligibility, you will only be eligible to borrow from the Direct Unsubsidized Loans.    If you continue to be enrolled in an undergraduate program after you have received the maximum Direct Subsidized Loans, you will be responsible for the interest that accrues on your subsidized loans.  Click here for more information on calculating Subsidized Loan time limitations.

Top

Rev. 6/6/14