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Important Reminders in Q3


Action:  Beginning July 1, 2013, the sequestration induced Direct Loan fee increases become effective.  The increases are applicable to loans with a first disbursement on or after July 1, 2013.  The fees are increased from 1.0% to 1.051% for Direct Loans and from 4.0% to 4.204% for PLUS Loans.

ActionImplementation of the 150% of academic program limit for receipt of subsidized Direct Loans for new borrowers starting on or after July 1, 2013.  Schools must implement a method of monitoring and addressing students who exceed the 150% limit.

Action:  Federal Direct Subsidized Loans disbursed on June 30, 2013 or before have an interest rate of 3.4%.  Federal Direct Subsidized Loans disbursed on or after July 1, 2013 have an interest rate of 6.8% (unless Congress passes a law that is signed by the President to change the law that is currently in effect that caused this increase).  NOTE:  There has been interest expressed by members of Congress to make a retroactive change in the law to prevent the increase in the interest rate from remaining in effect on the loans mentioned.  However, it is not known at the time of this writing whether such a change in the law will indeed occur.

Action:  Changes in the Total and Permanent Disability (TPD) regulations are effective July 1, 2013.

Action:  The older Private Education Loan Applicant Self-Certification Form may continue to be distributed by schools through July 31, 2013, and may be accepted through September 30, 2013.  After July 31, 2013, all schools that distribute the Self-Certification form must use the newly released version that became available on June 12, 2013.

Action:  The deadline for SAR/ISIR corrections for 2012-2013 is September 21, 2013.   This is a correction from the earlier date of September 24, 2013 ED had indicated in earlier SAR comments (see the February 28, 2013 Federal Register).

ActionThe deadline for submitting Federal Pell Grant disbursement records for 2012-2013 is September 30, 2013.

Action:  The Fiscal Operations Report for 2012-2013 and Application to Participate for 2014-2015 (FISAP) is due October 1, 2013.





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