Financial aid changes for 2012-2013

With all this talk about raising the interest rate in the loan Stafford "imminent and ignored many other changes in regulation. Starting from 1 July, there are a few other updates to the federal loan programs should be aware of borrowers. Will these changes affect loans that were originated before 1 July, only loans created by 2012-2013.

Here's a breakdown of what can expect to see for the next academic year:

No more subsidized loans to grad students. – Just like undergraduates, graduate students were previously able to receive subsidized loans and unsubsidized alike. Starting this year, will be available only Unsubsidized loans grad. Students at an interest rate of 6.8%.

Elimination of subsidy benefits for grace periods – "subsidized Stafford loans were less costly than non-subsidized counterparts because he was 1) interest rate less subsidized was 2) interest while enrolled in school, during the 6 month grace period after leaving school. Starting this year, there will be no interest subsidy during grace periods, will still exist but subsidy while enrolled in school at least half time.

Updated: extension of lower interest rate – I'm sure I've heard most of the students, a Bill was due to expire this year, doubling rates "subsidized Stafford loans" by 6.8 per cent. Fortunately, only Congress passed a Bill to keep rate at 3.4 per cent in 2012-2013. Learn more about the Stafford interest rates, past and present.

Decrease eligibility — last December, President Obama 2012 Consolidated Appropriations Act, which brought with it a change "Bill grant program" for the year 2012-2013. From autumn 2012, Bill grant is limited to 12 full-time semester per student. The way this calculated percent, 600 percent is the maximum student eligible for. For example, if you receive the maximum Pell grant both semesters, your percentage will be used 100%.

Low end automatic zero income — when families file FAFSA, they receive the expected family contribution (contest): number show in detail how much of the cost of the whole school should be able to make out of pocket. In previous years, anyone with an income of $ 32,000 or less automatically zero contest. This allows low-income families to qualify for more aid based on need. This year, the income limit has been reduced to $ 23,000, which would cut off funding for many students.

Termination payment incentives — "MOE" can no longer provide reimbursement incentives for borrowers "direct loans", except to lower the interest rate to pay for the automotive industry. Again, this is only for loans originated after July 1, 2012 — payment incentives may be still available for loans.

If you have any questions about these changes, you should contact the Ministry of education: 800-433-3243-1.