Federal Direct Loan Changes

  • 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.