Changes to Federal Student Aid Programs
Changes to federal legislation have resulted in some significant changes in student aid programs for all college and university students. Many of these changes go into effect July 1, 2012.
Pell Grant Eligibility:
Eligibility for Pell grants has been restricted to 12 semesters of full-time enrollment, or the equivalent for part-time students. If you have been a full-time student and have received Pell grants for 12 semesters, you cannot receive another Pell grant. Pell eligibility is pro-rated for part-time attendance. This affects current and future students. » More information about Pell Grant Lifetime Eligibility Used.
High School Diploma or GED required for aid eligibility:
Beginning July 1, 2012, only students who hold a valid high school diploma or GED can receive federal financial aid. If you are a current BPCC student and you were admitted under the Ability to Benefit (ATB) policy, you can and will continue to receive federal aid.
Expected Family Contribution:
For students and families who file the FAFSA, the income necessary to qualify for an Expected Family Contribution of zero changed from $32,000 to $23,000. Keep in mind there are multiple factors that go into calculating the EFC and financial aid awards. Having an EFC of zero does not guarantee any type of amount of student aid. This affects current and future BPCC students.
Changes to the Federal Loan Programs
The Budget Control Act of 2011was passed on August 2, 2011. Some of the provisions in the act impact federal student loan programs offered at BPCC. These changes will not affect the amount of loan funding available. However, loan funding will become more expensive. Here are the key provisions affecting future federal undergraduate student loans:
Loss of “origination fee rebate” affecting Stafford and Parent PLUS:
Currently, a 1% origination fee is charged for Stafford loans and a 4% fee for PLUS loans, but a portion of the fee, .5% for a Stafford loans and 1.5% for a PLUS, is rebated at the time of disbursement. Beginning July 1, 2012, the full fee will be charged.
Origination Fee
2012-2013: Loans first disbursed between July 1, 2012 and June 30, 2013 will be charged a 1% origination fee.2011-2012: Loans first disbursed between July 1, 2011 and June 30, 2012 will be charged a 1% origination fee. Direct Loans will offer a 0.5% up-front rebate, making the actual fee at disbursement 0.5%.
The loan fee/origination fee is subtracted proportionately from each loan disbursement.
Loss of interest rate reduction:
The last change is the loss of the .25% interest rate reduction if you pay your loans electronically while in repayment.
We recommend that students monitor their Federal Loan borrowing history online at www.nslds.ed.gov.
You may also be interested in using a federal loan repayment calculator to better understand your total loan amounts, repayment options, and overall loan costs. We recommend the following website: FinAid Loan Calculator or the SFA Loan Calculator.