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. Review the information below, and if you have any questions about how the changes will impact you , please contact the UAA One Stop at the University Center at (907)786-1480 or call 1-800-4-FED-AID (1-800-433-3243).
1. 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 semester, by law you cannot receive another one. Eligibility is pro-rated for part-time attendance. This affects current and future students.
2. Teacher Education Assistance for College and Higher Education (TEACH) Grants
3. 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 state or federal financial aid. If you are a current UAA student and admitted under the Ability to Benefit (ATB) policy, you can and will continue to receive federal aid.
Changes to the Federal Loan Programs
1. Graduate and Professional Students Only: Beginning July 1, 2012, all graduate and professional students will lose the interest subsidy on Direct Subsidized Loans. The graduate Direct loan program will become entirely unsubsidized, which means the loan will accrue interest while a student is in school. These changes will not affect the annual and aggregate borrowing limits. The maximum amount a student can borrow will remain at $20,500 per academic year.
2. Loss of interest rate reduction: Borrowers who pay thier loans electronically while in repayment will no longer receive an interest rate reduction of .25%.
3. Direct Loan Origination Fee increases: While the federal sequester does not otherwise change the amount or terms of Direct Loans, it does raise the loan fee paid by borrowers for Direct Loans first disbursed after March 1, 2013.
4. Loss of interest subsidy on Direct Subsidized Loans during the six-month grace period: Subsidized loans are loans for which the borrower is not responsible for the interest while the student is enrolled in college on at least a half-time basis, when the loan is in the six-month grace period after the student is no longer enrolled at least half-time, or if the loan is in a deferment status. A federal provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the disbursement is made on or after July 1, 2012, and before July 1, 2014. If you receive a subsidized loan during this timeframe, you are responsible for the interest that accrues while your loan is in the grace period. You do not have to make payments during the grace period (unless you choose to), but the interest will be capitalized (added to the principal amount of your loan) when the grace period ends. This provision does not eliminate the interest subsidy while the borrower is in school or during eligible periods of deferment.