In addition to today being the deadline to turn in the Free Application for Federal Student Aid (FAFSA) for the 2009 – 2010 school year, tomorrow marks the day many significant changes will take affect. July 1st is the start date for important changes in student loans and a significant increase in the maximum Pell Grant award.
FAFSA Deadline
According to the FAFSA web site, today is the last day to get in your application for the 2009 – 2010 school year. Don’t panic – this applies mostly to students who plan to or are currently attending summer classes at both traditional and online schools and have not yet submitted their application for student aid for that term.
If you are planning on attending school in the fall, you still have plenty of time to get your application in for federal aid. You may want to check your state financial aid deadlines, however, because many times these are earlier. Also, the sooner you can get your application in for federal and state student aid, the better. State funds, especially, run out quickly.
Changes to Student Loans
Tomorrow is the end of the Federal Family Education Loan Program (FFELP), which means that federal student loans will no longer be made through private lenders. The federal government will now directly (through the college) lend students money for college.
Other changes to student loans include interest rate decreases to federal student loans. For instance, new need-based subsidized Stafford loans’ interest rates will decrease more than one percent – from 5.6 percent to 4.5 percent for undergraduates.
Increase in Pell Grant and New Federal Grant
Those who qualify for the maximum Pell Grant award amount will see their award increase by $200. This is a total of $5550 for the 2010 – 2011 academic school year.
Also, the federal government will begin offering a new grant on July 1st – the Iraq and Afghanistan Service Grant. This grant is for students under 24 who are not eligible for the Pell Grant but whose guardian or parent was killed in connection with service in Iraq or Afghanistan following September 11, 2001. The award amount for this grant is equal to the maximum Pell Grant award amount, or $5550.
In order to qualify for federal loans or grants, you must first fill out the FAFSA. Even if you believe that you do not qualify, you should go online and apply as soon as possible. You might be pleasantly surprised. Those who apply early will get the most amount of funds available.
July 2, 2010
more financial aid is great news. i’ll take all the help i can get this year!
July 4, 2010
is it too late to apply???
July 8, 2010
is it too late to apply??
July 9, 2010
$5550 isn’t bad, i’m going to have to apply! thanks for the info
July 13, 2010
There should be more programs like this! Thanks for the heads up
July 13, 2010
Is it really true that the first ones to apply get the most funds available? I was under the impression you got as much as you were eligible for. Thanks for the article though, very informative!
July 14, 2010
I missed the deadline for submitting my FAFSA for this fall. Is there still a possibility I can get some financial help?
July 14, 2010
This is great news! I am interested in attending college online, do all of these changes apply to online education?
July 14, 2010
Is it possible that grant amounts will increase as time goes on?
July 15, 2010
Does financial aid cover online classes?
July 16, 2010
Thank you, for this information.
July 17, 2010
I have my FAFSA and loan package ready and sitting with my so called college CTU.
CTU and I are having serious problems and I seek to enroll elsewhere and Have a little breathing space which I didn’t get in their RUSH to sign me up.
July 20, 2010
I hope I’m not too late, I could really use the help!
July 20, 2010
Does FAFSA cover online college as well?
July 21, 2010
An increase of $200 isn’t bad. That should cover a textbook or two and I’m okay with that!
July 29, 2010
I am happy to hear that student loans will no longer be made through banks. Will there be any refinancing if you already have a student loan through a bank?
August 2, 2010
I’m going to apply right now, I hope I qualify!
August 4, 2010
Do you think the amount of the Pell Grant will continue to increase in the future?
October 20, 2010
Hi JB, the FAFSA deadline changes yearly. More often than not you can apply between January 1st and late June of every year.
January 12, 2011
Hey Jimmy. It is never too late to file your FAFSA! Some scholarships require you file it before applying. I suggest filing your FAFSA as soon as possible and apply for scholarships and grants for more financial help.
January 14, 2011
Hey Paul. This can be a tricky question to answer because it depends on the financial aid you’re receiving. Some scholarships and grants will not cover online courses but it does vary; same goes for student loans.
January 14, 2011
Hi Noah. It is possible for grant amounts to increase, especially due to rising tuition costs.
January 14, 2011
Hi Tyler. Changes in the FAFSA apply to anyone who files one yearly.
January 19, 2011
Hey Shea. Great question! The FAFSA covers online college as long as it is an accredited college/university.
February 21, 2011
Hey Kirk. Pell grant funding increased about two years ago, but is currently under fire and many students are fearing that it will soon face a large cut.
March 1, 2011
Hi Barbara, a current proposal is pushing to give students a 2% incentive if they transfer their student loans into the direct loan program. Until the legislation passes or not, it will all be up in the air.