In the Summer of 2011, Congress passed the Budget Control Act of 2011 which contained provisions related to student financial aid. The main changes are:
Federal Subsidized Stafford Loans for Graduate Students: Elimination of the subsidy component in the Federal Subsidized Stafford loan for graduate students. This elimination for graduate students helps to shore up funding for the Federal Pell Grant program which aids low-income undergraduate students. What this means to Rollins students:
Federal Pell Grants: Elimination of the "Year-Round" Federal Pell Grant for students who already received 100% of their annual Federal Pell Grant. What this means to Rollins students:
Direct Loan Repayment Incentives: The incentive for using automatic debit repayment provided borrowers with a 0.25 interest rate reduction and the up-front interest rebate incentive was equal to 0.5 percent of the loan amount and applied toward the 1 percent loan origination fee. For PLUS loans, the up-front interest rebate was 1.5 percent applied toward the 4 percent origination fee. Borrowers were able to keep the rebate if they made their first 12 payments on time. The language prohibits the Department of Education from authorizing or providing repayment incentives on new loans disbursed on or after July 1, 2012, except that an interest rate reduction may be provided to a borrower who agrees to automatically debited electronic payments.For additional information, please read information on the Budget Control Act of 2011 at http://www.cbo.gov/ftpdocs/123xx/doc12357/BudgetControlActAug1.pdf.