2/23/12
Changes to Student Loans Beginning July 1, 2012
On Feb. 23, the U.S. Department of Education (ED) published a Dear Colleague Letter (DCL) regarding the scheduled interest rate increase from the current 3.4 percent to 6.8 percent beginning July 1. The DCL also addresses eligibility of dependent students to receive up to $2,000 in additional Direct Unsubsidized loan funds and the following changes made to the Direct Loan (DL) program by the Budget Control Act of 2011.
- For loans made for enrollment beginning on/after July 1, graduate and professional students are no longer eligible to receive Direct Subsidized loans.
- For loans first disbursed on/after July 1, ED cannot offer any repayment incentives to DL borrowers to encourage on-time repayment of loans, including any reduction in the interest rate or the origination fee.
If you have questions about these changes, please contact OCAP's Policy, Compliance and Training department at 405.234.4432 or pct@ocap.org.
OCAP Communications
P.O. Box 3000
Oklahoma City, OK 73101-3000
Communications@ocap.org
www.ocap.org