Pell Grant Changes
The maximum number of equivalent full-time semesters a student is eligible to receive a Pell Grant is now 12 semesters for all students.
The maximum Expected Family Contribution (EFC) for which a student is eligible to receive a Pell Grant will decrease from 5273 to 4995. Students with an EFC of 4996 or higher will not be eligible for a Pell Grant for the 2012-13 academic year.
Changes Affecting Loans
- The in-school loan interest subsidy for graduate and professional students has been eliminated for all new loans as of July 1, 2012. This means graduate and professional students will be eligible for unsubsidized loans only after July 1, 2012.
- Many Direct Loan repayment incentives are now prohibited, including the up-front interest rebate, effective with new loans disbursed on or after July 1, 2012.
- The interest subsidy offered during the six-month grace period on subsidized loans is eliminated for new loans made between July 1, 2012 and July 1, 2014. Loan repayment still begins six months after the student is no longer enrolled at least half-time, but interest that accrues during those six months will no longer be subsidized by the federal government. It will be the responsibility of the student to pay the interest during the grace period.
- For loans created on or after July 1, 2012, the interest rate will increase to 6.8% on subsidized loans and will remain at 6.8% on unsubsidized loans.
Auto Zero Calculation
The income threshold for calculating the Auto Zero Expected Family Contribution (EFC) will decrease from $31,000 to $23,000. This will result in fewer families automatically qualifying for a zero EFC.
Please remember to file your 2012-13 FAFSA as early as possible and before the priority date of March 1. We wish you much success for a happy, healthy new year and a productive spring semester.