Financial Aid News
From time to time the Financial Aid office learns of outside scholarships or low interest loan programs for which our students may be eligible. Some scholarship opportunities are open to all students, while others may have eligibility requirements, such as residence in a particular state or region. learn more
Potential Fee Reduction
Thinking about taking the GRE? You may be eligible for a GRE fee reduction. Learn more
U.S. News Article
A recent article in U.S. News & World Report provides helpful information for families considering private educational loans. Learn more
Federal Loan Changes
The Budget Control Act of 2011 and the Consolidated Appropriations Act of 2012 made a number of changes to Federal Direct and PLUS Loans that will become effective for any loans first disbursed on or after July 1, 2012. 2012-13 Federal Loan Changes
• Grace Period Interest Subsidy—Public Law 112-74 amended a section of the Higher Education Act temporarily to eliminate the interest subsidy provided on Direct Subsidized Loans during the six month grace period. This change will be effective for new Direct Subsidized Loans for which the first disbursement is made on or after 7/1/2012 and before 7/1/2014.
• Direct Loan Borrower Repayment Incentives—The Budget Control Act ended the Department of Education’s authority to offer any repayment incentives, including any reduction in interest rate or origination fee. The origination fee rebate will no longer be available for loans with a first disbursement date of 7/1/2012 or later. The up-front origination fee on Federal Direct Loans (Subsidized and Unsubsidized) will be 1.0%; the origination fee on Direct PLUS Loans will be 4%.
• Subsidized Direct Loan interest rate—Under the College Cost Reduction and Access Act (2007), the interest rate on subsidized loans was reduced in stages from 6.8% to the 3.4% in effect for 2011-12. The reduced rate was to end for loans first disbursed on or after 7/1/2012. As a result, the interest rate on new Subsidized Direct Loans first disbursed on or after 7/1/2012 was to be a fixed 6.8%. In late June, Congress passed a one year extension of the 3.4% interest rate, so subisdized loans disbursed before July 1, 2013 wil continue to carry a 3.4% interest rate. It is not clear what will happen after that date.
As always, if you have questions about this or any other financial-aid related matter, please contact the Financial Aid Office.