Debt Ceiling Deal Impacts Financial Aid Programs
The debt ceiling legislation (PDF) signed today by President Obama preserves Pell funding at $5,550 but cuts subsidized interest on Stafford loans for Professional and Graduate students beginning July 1, 2012. In addition, Direct Loan repayment incentives (rebates) will no longer be available for new loans disbursed on or after July 1, 2012, with the exception of a reduction for borrowers who agree to have payments deducted via auto-debit from a bank account.
More federal financial aid programs could be affected by the implemented budget caps. OCAP will monitor the developments and report to you as more information is available.