Changes to Title IV Aid Legislation
Effective 2012-2013
(These changes were implemented by the Department of Education as the result of legislative action from the United States Congress, not the Office of Scholarships & Financial Aid at UNCW.)
- Students receiving Federal Pell Grants may use the grant for only two, full-time semesters during the award year. This means, if the Pell Grant was used for full-time enrollment for both fall and spring semesters, there will be no Pell Grant eligibility for summer term.
- Students eligible for the Federal Pell Grant may receive that grant for a maximum of 12 full-time semesters. Students who have received Pell for 12 terms, at any combination of institutions, are no longer eligible for the Pell Grant. Students’ previous Pell awards will be calculated to determine remaining eligibility.
- Students who earn a passing grade of “D-“ or higher for a course are eligible to repeat that course one time and receive financial aid. After students earn a passing grade for the class twice, any subsequent repeat of the course will no longer count toward enrollment for financial aid award purposes, and financial aid eligibility may be adjusted.
- Students who are eligible to graduate at the end of a semester will not receive financial aid after that semester – even if students do not walk for graduation. If only one specific course is required to graduate, that will be the only course for which students will receive financial aid. That means students could be enrolled, full-time, but receive aid for less than full-time enrollment. Aid eligibility will depend on how many credits are required for graduation.
- Satisfactory Academic Progress (SAP) will be reviewed at the end of each semester. Failure to maintain SAP at the end of fall or summer could result in the loss of financial aid eligibility for subsequent terms during that year.
- Subsidized loans are no longer available for graduate students.
- Subsidized loans for undergraduate students will begin accruing interest during grace periods. (Previously, interest on subsidized loans did not accrue during periods of half-time enrollment or the six-month grace period.)
- Up-front origination rebate on federal student and PLUS Loans has been discontinued. For 2012-2013, origination fees for Federal Direct Student Loans are 1% and Federal Direct PLUS Loans are 4%
- For example, students who borrow $5,000 receive $4,950 in loan funds.
- Families borrowing a $5,000 PLUS loan will receive $4,800.
- The Maximum Expected Family Contribution for Pell eligibility will drop to $4,995, down from $5,273 for 2011-2012.
- There are additional changes to the federal methodology for 2012-2013 used to determine eligibility for federal aid.
- Our office will attempt to provide students with updated information as it becomes available.
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