2019-20 Sequester Changes to Title IV Programs
On August 2, 2011, Congress passed the Budget Control Act, which put into place automatic federal budget cuts, known as “sequester.” Effective 10/1/19, sequestration changes affect subsidized, unsubsidized and PLUS loan fees percentage for 2019-20.
- Subsidized and unsubsidized (First disbursement on or after Oct 1, 2019 and before Oct 1, 2020) loan fees will decrease from 1.062% to 1.059%.
- For PLUS loans (First disbursement on or after Oct 1, 2019 and before Oct 1, 2020) loan fees will decrease from 4.248% to 4.236%.
- TEACH Grant (First disbursement on or after Oct 1, 2019 and before Oct 1, 2020) will be reduced to 5.90 %, resulting in the maximum award decreasing from $4000 to $ 3764.
- Iraq and Afghanistan Service Grants (First disbursement on or after Oct 1, 2019 and before Oct 1, 2020) will be reduced to 5.9 %, resulting in the maximum award decreasing from $6195 to $5829.
In an effort to implement, the federal sequester changes for the 2019-20 academic year; the Office of Financial Aid will be implementing the following:
- Fall 2019 Disbursements will end on September 27, 2019
- Financial Aid Self Service Functionality will not be available beginning on September 26, 2019
Beginning September 26 - October 4:
- Any loans in offered status but have not been accepted will be cancelled, students will need to request loans be reinstated.
- Students who are enrolled for less than 6 credits or not enrolled – loans will be cancelled
- Students who have accepted their loans but disbursement has not occurred prior to the last 9/27 disbursement will be cancelled and reapplied with the new sequestration fees. ( No action will be required by students)
- Fall 2019 Disbursements will resume on October 7
- Financial Aid Self Service Functionality will be available on October 7
Available October 1, 2019 it's time to complete your fafsa for the 2020-2021 year! Be sure to complete your FAFSA application by the priority deadline of March 1, 2020.
Complete the FAFSA online or download the MyStudentAid mobile app.
For questions or concerns contact the financial aid office at 301-860-3540 or email@example.com
- For students attending college in 2019-2020 (Fall 2019/Spring 2020) the Free Application for Federal Student Aid is available beginning October 1
- Student/parent(s) will use 2017 income information to complete the application
- Don’t forget to add BSU’s school code 002062
Note: We recommend the use of the IRS Data Retrieval Tool, which allows for automatic transfer of federal tax return data, and helps cut down on errors while greatly reducing your chances of being selected for verification by the U.S. Department of Education.