5/6/15
FY 2016 Sequester Required Changes
In April, the U.S. Department of Education published a Dear Colleague Letter describing changes to Direct Loan Program loan fees and reductions to Iraq-Afghanistan Service Grant and TEACH Grant awards. These changes are a result of the Budget Control Act of 2011, and are effective for loans and grants first disbursed between October 1, 2015 and September 30, 2016:
- The loan fee for subsidized and unsubsidized Direct Loans will be 1.068%
- The loan fee for parent and graduate Direct PLUS Loans will be 4.272%
- Award eligibility for Iraq-Afghanistan Service Grants will be reduced by 6.80%
- Award eligibility for TEACH Grants will be reduced by 6.80%
The FY 2016 loan fees and grant award eligibility reductions are 0.005% and 0.50% lower, respectively, than those required for FY 2015. Examples of the calculations, as well as contact information for questions, are included in DCL GEN-15-07.
Mary Heid
Executive Director
Oklahoma College Assistance Program (OCAP)
P.O. Box 3000
Oklahoma City, OK 73101-3000
mheid@ocap.org
www.ocap.org