[Oasfaa] Good news for your Tuesday!

[Jonna Raney]

In case you missed this on NASFAA news today , I thought I'd share so your day can be as "bright and happy" as mine! :) I mean if we didn't get to change Teach amounts every month (sometimes twice), I would completely run out of things to do! (The Teach change only affects those that have not disbursed their first disb before Oct 1 . Loan fee increases are for loans that disb first disb on or after Dec 1 .) 


TEACH Grants 
The sequester changes, beginning on October 1, 2013 , the percentage by which TEACH Grant awards must be reduced as compared to the sequester percentage reduction that became effective last spring. Specifically, TEACH Grant awards where the first disbursement is made on or after October 1, 2013 , must be reduced by 7.2 percent from the original statutory amounts. TEACH Grant awards, where the first disbursement was made after March 1, 2013 and prior to October 1, 2013 , continue to be covered under the FY 2013 sequester and must be reduced by 6.0 percent from the original statutory award amount regardless of when any subsequent disbursement of the award is made. The attachment to this letter includes a table that summarizes this information. 
Direct Loans 
As of October 1, 2013 , the sequester increases the origination fees charged to Direct Loan borrowers beyond last year's increases. However, taking into account all of the underlying circumstances, including operational requirements, the new loan fee percentages will apply only with regard to loans where the first disbursement is made on or after December 1, 2013 . The new loan fees are 1.072 percent for Direct Subsidized Loans and Direct Unsubsidized Loans and 4.288 percent for Direct PLUS Loans (both parent and graduate student PLUS Loans). 
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