Effective July 1, 2012, the grace period has been modified for Direct Subsidized Loans. Borrowers go into repayment once they are no longer enrolled in at least six units. The federal government will no longer cover the interest during the six-month grace period. Interest will accrue immediately once a borrower is no longer enrooled in at least six units.
Loan interest rates are going up to a fixed rate of 6.8% for the subsidized.
FEDERAL PELL GRANT CHANGES
Effective July 1, 2012, a Lifetime Limit will be assessed for all recipients of the Pell Grant. - The maximum number of semesters a student can receive a Pell Grant is now 12 (twelve) regardless of when you received your first Pell Grant:
- The number of years receiving Pell will be tracked as a percentage with a maximum Lifetime Eligibility Used (LEU) of 600%. For example, a full time student receives 2 semesters of Pell Grant will use 100% for the year. A part time student receives 2 semesters of Pell Grant will use 50% for the year.
- Students who have submitted a 2012-13 FAFSA and are in excess of 450% Lifetime Eligibility Used (LEU), will receive an e-mail message from the Department of Education in mid-June.
- Students will be able to view their Lifetime Eligibility Used (LEU) on their Student Aid Reports (SAR) beginning July 2012 or can go to www.NSLDS.ed.gov to find their LED from 1993 to present.
It is important that students use their Pell grant eligibility wisely, especially prior to transferring to SCI-Arc. NOTE: Congress enacted the Consolidated Appropriations Act of 2012 which included these changes. SCI-Arc is required to follow all federal Title IV laws in order to maintain the financial aid program.