Announcements
Federal Sequestration Update
We are still learning about the potential impacts that will take place as a result of the federal sequestration. Two major changes that you should be aware of at this time are:- TEACH Grant funding has been reduced by 12.6%. Please click here to learn more.
- Federal student loan origination fees will increase for new loans and for any increases made to an existing loan.
- For Direct Unsubsidized Loans where the first disbursement of the loan is after the sequester takes effect, the current loan fee of 1 percent of the principal amount of a loan will increase. We presently anticipate that the rate will increase to approximately 1.05 percent. With such an increase, for example, the fee on a loan for $5,500 would increase from $55.00 to $57.75, an increase of $2.75. We will provide the actual increased percentage when it becomes available.
- For Direct Graduate PLUS Loans where the first disbursement of the loan is after the sequester takes effect, the current loan fee of 4 percent will increase. We presently anticipate that the rate will increase to approximately 4.20 percent. With such an increase, for example, the fee on a $10,000 Direct PLUS loan would increase from $400.00 to $420.00, an increase of $20.00. We will provide the actual increased percentage when it becomes available.
Please note that at this time, information is rather limited. The TC Office of Financial Aid will make every effort to keep you up to date on the latest changes. For further information, please visit the Department of Education's official website.