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Latest from FSA: Required Changes to Title IV Programs

May 7, 2014

In a recent Dear Colleague Letter, FSA provided information regarding sequester required changes to loans and awards disbursed on or after October 1, 2014. These changes include:

  • Increased loan fees for Direct Loans disbursed on or after October 1, 2014 and before October 1, 2015.
      • For Direct Subsidized and Unsubsidized Loans, the loan fee is 1.073%.

 

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      • For Direct PLUS Loans, the loan fee is 4.292%.
  • A reduction of 7.3% from the Iraq-Afghanistan Service Grant award amount for which the student would otherwise have been eligible, where the first disbursement is on or after October 1, 2014 and before October 1, 2015.
  • A reduction of 7.3% from the TEACH Grant award amount for which the student would otherwise have been eligible, where the first disbursement is on or after October 1, 2014 and before October 1, 2015.

In a previous Electronic Announcement, FSA encouraged institutions to refrain from submitting origination records to the COD System for Direct Loans that will be disbursed on or after October 1, 2014 until further guidance was provided. Although more details will be provided over the next couple of weeks, institutions may begin submitting these origination records using these updated fees.

For more information and helpful charts, please see the original Dear Colleague Letter: http://ifap.ed.gov/dpcletters/GEN1410.html.

 

Amy Moser, Southern Regional Director, Nelnet Partner Solutions

Amy Moser, Southern Regional Director, Nelnet Partner Solutions

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