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OCAP Online News
file:///Y|/Newsletters/OCAP%20Outlook/OCAP%20Online%20News%208-2012.htm[3/29/2013 10:09:29 AM]
14
August 2012
OCAP Online News
In this issue:
General News | Featured Tool | College Planning | Who's Who | Financial
Aid
Scholarships & Other Aid Opportunities | Financial Literacy | Student Loan
Management | Calendar
General News
Ask the Expert: New Changes to Federal Pell Grants and Student
Loans
July 1 of each year marks the beginning of the federal aid year, as well as the beginning of the academic year for many
schools. This year, changes have been made to both the Pell Grant program and student loans.
Federal Student Aid Eligibility. First-time students who enroll on or after July 1 will need one of the following to be
eligible for federal aid, including grants, loans and work-study:
High School Diploma
GED
Home-School Graduation Documentation
Students enrolled prior to July 1 are not affected by this change.
FAFSA Expected Family Contribution. Beginning July 1, families will need an adjusted gross income at or below
$23,000 to receive an automatic $0 Expected Family Contribution as calculated by the Free Application for Federal
Student Aid (FAFSA).
Pell Grant Eligibility. All students, regardless of enrollment date, may only receive Pell for a maximum of 12
equivalent full-time semesters. Transfer and returning students are also affected by this change, even if they've
previously received Pell funds under the 18-semester rule.
Federal Student Loans. Subsidized Stafford Loans disbursed on or after July 1 will continue to have an interest rate of
3.4 percent through 2012-13. (Legislation has not yet been passed to continue this rate for 2013-14 and beyond.) The
fixed interest rates for Unsubsidized Stafford, Graduate PLUS and Parent PLUS loans remain the same as 2011-12 at 6.8
percent, 7.9 percent and 7.9 percent, respectively.
Subsidized Stafford Loans disbursed on or between July 1, 2012 and June 30, 2014 do not include a grace period interest
subsidy. During this two-year period, interest will accrue during the six months immediately following a student's
graduation, withdrawal or drop to less than half-time enrollment. If the student doesn't pay the interest during this
time, it will be capitalized at the end of the grace period. However, loans issued prior to July 1, 2012 and after June 30,
2014 will retain a grace period interest subsidy, provided further legislation is not passed.
Object Description
Description
| Title | OCAP Online News 8-2012 1 |
| Full text | OCAP Online News file:///Y|/Newsletters/OCAP%20Outlook/OCAP%20Online%20News%208-2012.htm[3/29/2013 10:09:29 AM] 14 August 2012 OCAP Online News In this issue: General News | Featured Tool | College Planning | Who's Who | Financial Aid Scholarships & Other Aid Opportunities | Financial Literacy | Student Loan Management | Calendar General News Ask the Expert: New Changes to Federal Pell Grants and Student Loans July 1 of each year marks the beginning of the federal aid year, as well as the beginning of the academic year for many schools. This year, changes have been made to both the Pell Grant program and student loans. Federal Student Aid Eligibility. First-time students who enroll on or after July 1 will need one of the following to be eligible for federal aid, including grants, loans and work-study: High School Diploma GED Home-School Graduation Documentation Students enrolled prior to July 1 are not affected by this change. FAFSA Expected Family Contribution. Beginning July 1, families will need an adjusted gross income at or below $23,000 to receive an automatic $0 Expected Family Contribution as calculated by the Free Application for Federal Student Aid (FAFSA). Pell Grant Eligibility. All students, regardless of enrollment date, may only receive Pell for a maximum of 12 equivalent full-time semesters. Transfer and returning students are also affected by this change, even if they've previously received Pell funds under the 18-semester rule. Federal Student Loans. Subsidized Stafford Loans disbursed on or after July 1 will continue to have an interest rate of 3.4 percent through 2012-13. (Legislation has not yet been passed to continue this rate for 2013-14 and beyond.) The fixed interest rates for Unsubsidized Stafford, Graduate PLUS and Parent PLUS loans remain the same as 2011-12 at 6.8 percent, 7.9 percent and 7.9 percent, respectively. Subsidized Stafford Loans disbursed on or between July 1, 2012 and June 30, 2014 do not include a grace period interest subsidy. During this two-year period, interest will accrue during the six months immediately following a student's graduation, withdrawal or drop to less than half-time enrollment. If the student doesn't pay the interest during this time, it will be capitalized at the end of the grace period. However, loans issued prior to July 1, 2012 and after June 30, 2014 will retain a grace period interest subsidy, provided further legislation is not passed. |
| Date created | 2013-06-11 |
| Date modified | 2013-06-11 |
