On August 2, 2011, Congress passed the Budget Control Act, which put into place automatic federal budget cuts, known as “sequester”. Effective 10/1/20, sequestration changes affect subsidized, unsubsidized and PLUS loan fees percentage for 2020-21.
- Subsidized and unsubsidized loans (first disbursement on or after October 1, 2020 and before
October 1, 2021) loan fees will decrease from 1.059% to 1.057%
- For PLUS loans (First disbursement on or after Oct 1, 2020 and before Oct 1, 2021) loan fees will decrease from 4.236% to 4.228%.
- TEACH Grant (First disbursement on or after Oct 1,2020 and before Oct 1, 2021) will be reduced to 5.70 %, resulting in the maximum award decreasing from $ 3764 to 3772.
- Iraq and Afghanistan Service Grants (First disbursement on or after Oct 1, 2020 and before Oct 1, 2021) will be reduced to 5.7 %, resulting in the maximum award decreasing from $5970 to $5983.
In an effort to implement, the federal sequester changes for the 2020-21 academic year; the Office of Financial Aid will be implementing the following.
- Fall 2021 Disbursements will ended on September 29, 2019
- Financial Aid Self Service Functionality will not be available beginning on September 29, 2019
Beginning September 29 - October 7
- Any loans in offered status but have not been accepted will be cancelled, students will need to request loans be reinstated.
- Students who are enrolled for less than 6 credits or not enrolled – loans will be cancelled
- Students who have accepted their loans but disbursement has not occurred prior to the last 9/29 disbursement will be cancelled and reapplied with the new sequestration fees. ( No action will be required by students)
- Fall 2020 Disbursements will resume on October 8
- Financial Aid Self Service Functionality will be available on October 8