There are a number of new requirements for the federal student aid programs due to legislative changes in the Department of Education. These changes could impact your financial aid for the upcoming academic year and in the future. Most of these changes are effective with the 2013-14 school year (July 1, 2013 through June 30, 2014).
- For the 2013-2014 school year, U.S. Dept. of Education made the following changes to the FAFSA and Verification processes:
- IRS Data Retrieval- Jones International University strongly recommends all students, parents, and spouses (if applicable) upload their 2012 income tax information to the FAFSA using the IRS Data Retrieval tool. In order to do so, all parties must have filed their 2012 taxes, at least two weeks prior to filling out the FAFSA.
Verification-Students selected for verification will be required to:
- Submit an official Tax Return Transcript obtainable from the IRS at www.irs.gov after the 2012 Tax Return has been filed. (This is NOT required if the IRS Data Retrieval tool was used).
- Submit Tax Return Transcripts for each person whose social security number is listed on the FAFSA who was required to file taxes in 2012 (students, parents, and spouses if applicable).
- JIU has partnered with Veritax, a company that can request Tax Return Transcripts from the IRS. Once the request has been made, Tax Return Transcripts are received by JIU within 48 hours. Eligible students will be provided this option to streamline the verification process.
What changes were made to Direct Loans?
As of July 1, 2013 the following changes are scheduled to go into effect that will impact federal student loan programs:
- Direct Subsidized Loan interest rates are scheduled to increase from 3.4% to 6.8%.
- The loan fee for Direct Subsidized or Direct Unsubsidized Loans will increase from 1.0% of the principal amount of a loan to 1.051%.
- The loan fee for Direct PLUS Loans for both parent and graduate student borrowers will increase from 4.0% to 4.204%. Go to: http://www2.ed.gov/office/osfap/directloan/student.htm for current information on federal loan interest rates.
- As of July 1, 2013, a first-time Federal Subsidized Student Loan borrower is no longer eligible for the Subsidized Student Loan program if he or she exceeds 150% of the published length necessary to graduate within an undergraduate degree program. In addition, a borrower reaching the 150% limit becomes ineligible for the interest subsidy benefits on all Federal Subsidized Loans disbursed to the borrower on or after July 1, 2013.
- Maximum award increased to $5645 for full time enrollment for an academic year.
- The amount of Federal Pell Grant funds a student may receive over his or her lifetime is limited by federal law to the equivalent of six years of Pell Grant funding. Since the maximum amount of Pell Grant funding a student may receive each year is equal to 100%, the six-year equivalent is 600%. There is no appeal when 600% is reached. Please visit http://www.studentaid.ed.gov/types/grants-scholarships/pell/calculate-el... to read about the Pell Grant Lifetime Eligibility Limit.
Automatic zero EFC income threshold increased to $24,000 from the current $23,000. Auto zero calculation applies only to the EFC calculation for dependent students (based on parent income) and independent students with dependents other than a spouse (based on the combined income of the student and spouse).