NASFAA SUMMARY OF STUDENT AID CHANGES IN FY 2012 BUDGET BILL

NASFAA SUMMARY OF STUDENT AID CHANGES IN FY 2012 BUDGET BILL

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