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
Due to the federal sequester, the TEACH Grant programs provides grants to students who are completing, or plan to complete, coursework needed to begin a career in teaching and agree to teach, for at least four complete academic years, in a high-need field at an elementary school, secondary school, or educational service agency that serves students from low-income families. Award amounts for any TEACH Grant that is first disbursed after March 1, 2013, must be reduced by 12.6 percent from the award amount for which a recipient would otherwise have been eligible. For example, the maximum award of $4000 is reduced by $504, resulting in a maximum award amount of $3,496.

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.

• For Direct Subsidized or Direct Unsubsidized Loan, the loan fee will increase from 1.0 percent of the principal amount of a loan to 1.051 percent. For example, the fee on a loan for $5,500 will be increased by $2.80 from $55.00 to $57.80.
• For Direct Plus Loans for both parent and graduate student borrowers, the loan fee will increase from 4.0 percent to 4.204 percent. For example, the fee on a $10,000 Direct Plus Loan will increase by $20.40 from $400 to $420.40.

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.