Federal Pell Grant
600% Pell Lifetime Eligibility Used
went into effect.
Pell grants are limited to 12 semesters
Only the amount (or percent) of time
that a student is enrolled will count against that time limit.
The amount of the maximum Pell Grant
award went up. In 12-13 the maximum award was $5550.00 and for 13-14 it is
The amount of the maximum Pell Grant
award went up. In 13-14 the maximum award was $5645.00 and for 14-15 it is
Direct Loans eliminated the interest
subsidy during the grace period for loans made after 7/1/12.
Due to sequestration, the origination
fee on subsidized/unsubsidized and PLUS loans changed to 1.051% for
subsidized/unsubsidized and 4.204% for PLUS loans with a first disbursement
The U.S. Department of Education can no
longer offer borrowers repayment incentives.
On July 6, 2012, the Moving Ahead for
Program in the 21st Century Act (MAP-21), (Public Law 112-141)
was enacted. MAP-21 added a new provision to the Direct Loan statutory
requirements that limits a new borrower’s eligibility for Direct Subsidized
Direct Subsidized Loan eligibility is
limited to 150% of the published program length for first-time borrowers as of
July 1, 2013. There is no effect on Direct Unsubsidized or PLUS Loan
First-time borrower is a borrower who
has no outstanding balance of principal or interest on a Direct Loan or FFEL loan
on July 1, 2013, or on the date the borrower obtains a Direct Loan after July
Borrower who had loan balance and paid
off in full prior to receiving loans on/after July 1, 2013, becomes “first-time
borrower”. First-time borrower is no longer eligible for Direct
Subsidized Loans once the borrower has received Direct Subsidized Loans for a
period of 150% of the length of the borrower’s education program.
The origination fee on
subsidized/unsubsidized and PLUS loans changed to 1.072% for subsidized/unsubsidized
and 4.288% for PLUS loans with a first disbursement after 12/1/13.
o President Obama has signed the Bipartisan Student Loan Certainty
Act of 2013. The new law amends the Direct Loan interest rate section of
the Higher Education Act of 1965, as amended (HEA).
The interest rate for undergraduate
students on Direct Subsidized and Unsubsidized Loans for the first disbursed on
or after July 1, 2013 through June 30, 2014 will be a fixed interest rate
Direct PLUS Loans (Parents of Dependent
Undergraduate Students) for the first disbursed on or after July 1, 2013
through June 30, 2014 will be a fixed interest rate of 4.60%.
Ability to Benefit
Effective July 2012, new students who
did not have a standard high school diploma or GED were not eligible for Title
IV aid. Current students without a standard high school diploma or GED
who had received aid under the Ability-to-Benefit provision of the federal
regulation were allowed to continue to receive financial assistance. Some students
were grandfathered in based on their prior college experience.
The same rules apply.
Ability-to-Benefit is also now reported to the Department of Education through
our disbursement process. Student's should be sure to correctly report
high school diplomas received, whether from the US or a foreign school on both
the FAFSA and their supporting documents turned in to the school so that their
disbursements are not affected.
All colleges and universities are
unable to access IRS Tax Returns and had to start collecting actual IRS data as
part of the verification process. Students had to start submitting either a
copy of an IRS Tax Return Transcript or use the Data Retrieval Tool on the
FAFSA, if selected.
Verification of SNAP (food stamps) and
child support paid also became required.
Some students will need to verify their
identity and educational purpose, while others may need to verify their high
The U.S. Department of Education issued new rules
regarding which parents are required to share their financial information on
o Single-sex married couples
§ If a single-sex couple is married, the new federal rule now
requires both spouses to complete the aid application. To reflect this change,
the FAFSA will now ask for information about “Parent 1” and “Parent 2.”
Previously, only the biological parent had to include his/her assets and
§ A single-sex couple that has not married does not have to share
both parents’ financial data unless the partner has legally adopted the
o Unmarried parents living together
§ The new rules require unmarried parents who are living together
to file the FAFSA jointly. Previously, only one parent had to submit the FAFSA.
§ If a student is living with a guardian, such as an older sibling
or grandparent, he or she is considered an independent student. Only the
student’s income and assets will be considered for financial aid purposes.
Please note: All
changes are instructions from the U.S. Dept. of Education and are federal law.
These laws are not subject to change by Aultman College.
Ohio College Opportunity Grant
13-14 - The maximum Ohio College Opportunity Grant decreased from $2280 to