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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 10/1/18, sequestration changes affect subsidized, unsubsidized and PLUS loan fees percentage for 2018-2019.

  • Subsidized and unsubsidized (first disbursement on or after Oct 1, 2018 and before Oct 1, 2019) loan fees will decrease from 1.066% to 1.062%.
  • For PLUS loans (first disbursement on or after Oct 1, 2018 and before Oct 1, 2019) loan fees will decrease from 4.264% to 4.248%.
  • TEACH Grant (first disbursement on or after Oct 1, 2018 and before Oct 1, 2019) will be reduced by 6.6 %, resulting in the maximum award decreasing from $4000 to $ 3736.
  • Iraq and Afghanistan Service Grants (first disbursement on or after Oct 1, 2018 and before Oct 1, 2019) will be reduced by 6.6 %, resulting in the maximum award decreasing from $5920 to  $5529.28.

In an effort to implement the federal sequester changes for the 2018-2019 academic year, the Office of Financial Aid will be implementing the following:

  • Fall 2018 Disbursements will end on September 28, 2018
  • Financial Aid Self Service Functionality will not be available beginning on September 27, 2018 

From October 1 through October 8:

  • 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 9/28 disbursement will be cancelled and reapplied with the new sequestration fees. No action will be required by students.
  • Fall 2018 Disbursements will resume on October 8.
  • Financial Aid Self Service Functionality will be available on October 8.