Changes in student aid


Changes in student aid

by: Kim Suchek | .
Stripes Guam | .
published: August 15, 2012

If you have any questions or concerns or would like to share a story or situation, contact me at and visit my website for updated information and other Resources not listed in my book.
Hello Military Community,

As the summer is upon us and you discussing college with your children or even finishing a class or two, yourself, I thought this information may be useful. This is a brief description of the 2012-2013 changes to the Federal Student Aid Programs which are a result of recent legislative changes. These new requirements for the federal student aid programs are effective for the 2012-2013 school year, which is July 1, 2012 through June 30, 2013.

Students without a high school diploma are NO longer eligible for federal student aid for passing an approved test or completing at least six credit hours or 225 clock hours of postsecondary education. Students must have a high school diploma or GED if enrolling in higher education for the first time on or after July 1 in order to be eligible for federal student aid.

Expected Family Contribution (EFC): The EFC number will be “zero” if the family income does not exceed $23,000 (previously $32,000). Remember, when applying for FAFSA (Free Application for Federal Student Aid) an Expected Family Contribution number is assigned and used to determine federal student aid eligibility.

Graduate and professional students no longer eligible for subsidized loans: As of July 1, graduate and professional students cannot receive federal subsidized loans, but are still eligible for up to $20,500 in unsubsidized loans each year.
Direct subsidized loans: No interest subsidy during the six-month grace period. After a student is no longer enrolled in a college program at least half time, there is no longer an interest subsidy provided during the six month grace period. Payments may not be required during the grace period, but interest continues to accrue.

Duration of eligibility of Pell Grant Program: Pell grant eligibility is now a total of 12 semesters or the equivalent. All eligibility for additional Pell Grants ends in the 2012-2013 school year.

No more repayment incentives from U.S. Department of Education: As of July 1, the Department of Education may only offer interest rate reductions to Direct Loan borrowers and only if the borrower agrees to have payments automatically electronically debited from their bank account.

For further information on these changes and how they may affect you or your children, contact your financial aid administrator at the school, or call 800-4-Fed-AID. And you can get further information regarding the G.I. Bill, Montgomery Bill and Grants for you or your dependents through my book Operation: Military Resources.

Blessings from my family to yours,


Related Content: Spouse offers survival guide for military families, Write from the heart, Getting back to the basics, Relief act offers shield for families, TRICARE program offers assistance 24/7, Finding the support you need, Ensure your military family is insured, Housing info site debuts, Weathering a divorce from the military , Buying a home with a VA loan, Making PCSing as painless as possible, Navigating the TRICARE dental transition, Be forgiven for your student loan, Educating yourself on student aid