By now you are aware that Congress passed and President Obama signed the Budget Control Act of 2011 that will result in cuts to federal programs. There will be changes to the federal student loan programs beginning July 1, 2012
. The new law will not affect the amount of funding available, just the cost (loans will cost more).
These provisions are effective with loans first disbursed on or after July 1, 2012
- The interest subsidy has been eliminated on Stafford loans for graduate students
- Graduate students can still borrow up to $20,500 in unsubsidized loans
- Stafford origination fees of 1% will be deducted from disbursements
- Grad PLUS loan origination fees of 4% will be deducted from disbursements
. Summer school students who take 5 or more hours may still be eligible for a subsidized loan for the 2012-2013 year, as long as the loan is originated and has the first disbursement before July 1.
Please contact me in the Office of Financial Aid with any questions you may have.
-Doug Akins, financial aid officer