FSA SEQUESTER REDUCES IRAQ AFGHANISTAN SERVICE GRANT

The 2017-2018 Iraq Afghanistan Service Grant is being reduced because of FSA’s ongoing Sequestration of Title IV Funds. A student whose parent or guardian died as a result of U.S. military service in Iraq or Afghanistan after September 11, 2001, may receive increased FSA funds if at the time of the parent or guardian’s death the student was either less than 24 years old or was enrolled in college. The amount of a student’s Iraq and Afghanistan Service Grant is based on the maximum Federal Pell Grant for the relevant award year. The maximum Federal Pell Grant for the 2017-2018 award year will be $5,920, however due to the sequestration of FSA funds, all scheduled awards where a first disbursement is made prior to October 1, 2017 must be reduced by 6.90%. This represents a $408.48 reduction and results in a maximum scheduled award of $5511.52. Federal Student Aid has not as of yet, provided guidance for awards disbursed after October 1, 2017.

Sequester Changes and Operational Guidance for Direct Loan Fee Change

As has been the case for the last few years, Sequester changes kick in beginning on October 1, 2016; the start of the Federal Government’s Fiscal Year. These changes impact loan origination fees in the Direct loan program and make reductions to the Iraq-Afghanistan Service Grant and Teach Grant programs where the first disbursement is made on or after 10/1/2016. I summarized this below for you Continue reading Sequester Changes and Operational Guidance for Direct Loan Fee Change