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Changes to Federal Title IV Aid Programs that You Need to Know
Summer 2012 – Pell
Update 5/2/2012: Crossover Pell -The Department of Education has removed the mandatory requirement for awarding Pell from the year that benefits the student the most when the institution has terms that crossover two academic years.
Academic Year 2012-2013: Changes Made to Title IV Aid Programs by Recently Enacted Law
In December 2011, President Obama signed into law the Consolidated Appropriations Act, 2012. The law significantly impacts the Federal student aid programs authorized under Title IV of the Higher Education Act of 1965, as amended for the 2012-13 academic year. Listed below are changes you need to know:
- Pell Grant 12 semester lifetime limit – Pell Grant 12 semester lifetime limit – Beginning Fall 2012, students are limited to 12 semesters (or 600%) of Pell Grant eligibility during their lifetime. This change affects all students regardless of when or where they received a Pell Grant. Students that are currently receiving the Pell Grant in the academic year 2011-12 and have already used 600% of their Pell Grant eligibility will no longer be eligible to receive the Pell Grant beginning Fall 2012.
- Auto-Zero EFC Income Threshold – The threshold for an automatic zero Expected Family Contribution (EFC) has been reduced to $23,000 for both dependent and independent students.
- Maximum Expected Family Contribution – The maximum Expected Family Contribution (EFC) that enables a student to be eligible to receive the Pell Grant has been lowered to 4995 for the 2012-13 academic year. Students that have an EFC of 4996 and above will not be eligible to receive the Pell Grant.
- Ability-to-Benefit eliminated – Students who do not have a high school diploma or a recognized equivalent (e.g., GED) or do not meet home school eligibility requirements and who first enroll in a program of study on or after July 1, 2012, will not be eligible to receive Title IV aid.