Sweeping Changes in Financial Aid Regulations Will Affect Napa Valley College Students
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The following new federal (Public Law 112-74) and state regulations will impact students applying for financial aid for the 2012-2013 academic year:
Six Year, Lifetime Limit for Pell Grants [HEA section 401(c)(5)] - Effective July 1, 2012, students will only be eligible to receive six full-time equivalent years (600%) of the Pell Grant.
- Financial aid offices report attendance status for students at each Pell disbursement. Full-time for one semester = 50%, three-quarter time for one semester = 37.5%, half-time for one semester = 25%, etc.
- Students who already exceed the 600% limit will no longer be eligible.
Course Repeats – Effective July 1, 2011, students may only receive federal financial aid funding for one repetition of a previously passed course. Passing grades are A, B, C, D, P, or CR.
Elimination of Ability to Benefit (ATB) Eligibility [HEA section 484(d)] - Effective July 1, 2012, students must have a high school diploma or the equivalent (i.e. GED or California High School Proficiency Exam) to be eligible to receive federal student aid.
- Students who are currently enrolled in an eligible program of study and who previously met ATB requirements (passed ATB or obtained six units of college credit) will continue to be eligible while enrolled in that program of study.
Verification (34 CFR 668.51-61) – The verification process and forms have been revised for the 2012-13 award year.
- Copies of tax returns are no longer accepted as documentation of income. Students and parents must either participate in the IRS Data Retrieval process (draw down data from IRS directly onto the FAFSA and not make changes) or submit a tax transcript from the IRS.
- Verification of food stamps, number in college, and child support paid will now be required.
Interest Subsidy for Direct Subsidized Loans [HEA section 428(a)(3)(A)(i)(l)] – New loans made on or after July 1, 2012, and before July 1, 2014, will not be eligible for interest subsidy during the six month grace period.
Minimum Need for Part C Fee Waivers – For 2012-13, the minimum need a student must demonstrate based on the FAFSA calculation is $1,104.