According to the National Association of Student Financial Aid Administrators (NASFAA), Congress has reached a deal on the fiscal year (FY) 2012 Budget. This bill, which has been compromised and negotiated with over several months, includes changes affecting borrowers of Direct Loans, effective July 2012: • Interest subsidy during the six-month grace period is eliminated for new Stafford Loans made on or after July 1, 2012 and before July 1, 2014. The repayment period still begins 6 months after the student is no longer enrolled at least half-time, but the interest that accrues during the six months will be payable by the student rather than be subsidized by the federal government. • Changes that affect Graduate Professional Students are the loss of eligibility for Subsidized Stafford Loans as of July 1, 2012
*Article reference: “Study of Student Aid Changes in FY 2012 Budget Bill” c/o www.nasfaa.org