Interest rate for the Federal Direct Subsidized loan will revert back to 6.8% for all subsidized loans first disbursed on or after July 1, 2012. (Current interest rate is 3.4% for 2011-2012 school year)
Interest subsidy during the six-month grace period have been eliminated for new Federal Direct Subsidized Loans disbursed on or after July 1, 2012 and before July 1, 2014.
Subsidized loans for graduate students have been eliminated effective July 1, 2012. (Note: Up to $20,500 in Federal Direct Unsubsidized loans are available for graduate students)
The up-front rebate on direct loans will be eliminated for loans
Federal Pell Grant Changes
Maximum Pell grant will remain $5,550 for 2012-2013.
Minimum award is 10% of maximum ($555). Pell grants less than that amount have been eliminated.
Eligibility is being reduced from 9 years to 6 years.