Financial Aid

It is time to start thinking about financial aid for the 2012-2013 academic year!   

To apply for NEED-BASED federal, state, and institutional financial aid, you MUST complete the Free Application for Federal Student Aid (FAFSA) on-line at www.fafsa.ed.gov for the 2012-2013 academic year.   We encourage you to complete this form by March 1, 2012.   Filing later than this may jeopardize your eligibility for some aid programs.

**Below are some important changes in the financial aid process for 2012-2013**

New Federal Requirements for students selected for verification for 2012-2013

Financial aid applicants will be required to link their IRS data with their FAFSA or submit a tax transcript.

• IRS data is available for linking 2 weeks after filing if you file electronically, or 8 weeks after filing if you submit a paper copy of your tax return to the IRS.
• Linking will pre-fill all of your tax information into the FAFSA.
• If you complete your FAFSA before your tax return is available to link to the IRS, you will be required to go back to your FAFSA and make corrections.
• To request a tax transcript go to:  www.irs.gov and click "Order a Return or Account Transcript" under the Tools option.
• Choose your transript:   Make sure you request the Tax Return Transcript  (not the Tax Account Transcript).

Federal Loan Changes for 2012-2013

The Budget Control Act of 2011 was passed on August 2, 2011.   Some of the provisions in the act impact federal student loan programs.   These changes WILL NOT affect the amount of loan funding available.   However, loan funding will become more expensive.  Here are the key provisions affecting future federal undergraduate student loans:

• Loss of “origination fee rebate” affecting Stafford and Parent PLUS:   Currently, there is a 1% origination fee on a Stafford loan and a 4% fee on PLUS loans, but a portion of the fee, .5% for a Stafford  and 1.5% for a PLUS, is rebated at the time of disbursement.   Beginning July 1, 2012, the full fee will be charged.
• Loss of interest rate reduction affecting Stafford and Parent PLUS:  The up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered on any Federal Direct Loan with a first disbursement date that is on or after July 1, 2012.
• The law continues to authorize the Department of Education to offer interest rate reductions to Direct Loan borrowers who agree to have electronic payments automatically debited from a bank account.

• Office Hours:  Monday - Friday, 8am - 5pm EST
• Phone: Call toll free at 1.800.955.4464, ext. 7859
• FAX: 810.762.9807
• finaid@kettering.edu