skip navigation


Durham Tech Logo
Durham Tech Home > Financial Aid  > Federal Financial Aid Changes for 2012-2013
Federal Financial Aid Changes for 2012 2013
Do you plan to apply for financial aid in the 2012 – 2013 academic year?  Durham Tech would like to inform you of some new federal financial aid regulations that might potentially impact to your financial aid eligibility. Please read this information carefully.
Pell Grant Eligibility Changes
There are two significant changes that affect the Pell Grant:
  1. Beginning July 1, 2012, the maximum number of equivalent full-time semesters you could be eligible to receive a Pell Grant will be 12 semesters for all students. The maximum applies to all semesters in which you ever received a Pell Grant at any college, not just the semesters you may have received a Pell Grant at Durham Tech. For example, if you have taken a full-time load of classes over the period of five or six years (if you did not attend or did not receive Pell during the summer) and you received a Pell Grant for each of these terms, you may now no longer be eligible for a Pell Grant with the new regulations. 

    If you have reached ‘Maximum Timeframe’ status and had your aid eligibility extended due to an earned degree, diploma, or certificate from Durham Tech, you are most likely to be impacted by this change.

    You are encouraged to verify the number of full time semesters in which you received aid by accessing your financial aid history at www.nslds.ed.gov. You may also contact NSLDS customer service at 1-800-433-3243 if you have any remaining questions.

  2. The maximum Expected Family Contribution (EFC) for which a student is eligible to receive a Pell Grant will decrease from 5273 to 4995. Students with an EFC of 4996 or higher will not be eligible for a Pell Grant for the 2012-2013 academic year. If you plan to enroll less than half time your aid eligibility may also be limited.
Direct Loan Changes
If you plan to apply for a Direct Loan, there are three significant changes:
  1. Many Direct Loan repayment incentives are now prohibited, including the up-front interest rebate, effective with new loans disbursed on or after July 1, 2012. As a result, the loan origination fee has increased from .5 percent to 1 percent of the total loan amount received.

  2. The interest subsidy offered during the six-month grace period on subsidized loans has been eliminated for new loans made between July 1, 2012 and July 1, 2014. Loan repayment still begins six months after the student is no longer enrolled at least half time, but the interest that accrues during those six months will no longer be subsidized by the federal government. It will be your responsibility to pay the interest that accrues during the grace period. 
FAFSA/Verification Process Changes
The U.S. Department of Education, in an effort to simplify the FAFSA (Free Application for Federal Student Aid) process, strongly encourages you to use the IRS Data Retrieval Tool to access student and parent tax information. Utilizing this tool simplifies the FAFSA process and may result in quicker processing of your financial aid file, especially if you are selected for verification. When filing your 2012-2013 FAFSA, you should take advantage of the IRS Data Retrieval Tool which allows you to link to the IRS from the FAFSA and retrieve tax information directly from the IRS to populate the FAFSA tax return questions. You should file your 2011 tax return early so that you can use the IRS Data Retrieval Tool as soon as possible.

Below is an explanation of the changes and how the changes impact your FAFSA:
  1. Are you starting the FAFSA process now? You should use the IRS Data Retrieval Tool to link FAFSA income data to the IRS and retrieve tax information directly.

  2. Have you already completed your 2012-2013 FAFSA? If you have already completed your 2012-2013 FAFSA and you have already filed your 2011 tax return, but you did not use the IRS Data Retrieval Tool, you should go back and correct your FAFSA. The IRS Data Retrieval Tool is available 2 weeks after you electronically filed your 2011 tax return (up to 8 weeks if paper). Log into your FAFSA at www.fafsa.ed.gov and make a correction to use the IRS Data Retrieval Tool to update your tax information.

  3. Has Durham Tech’s Financial Aid office requested a tax transcript to complete your financial aid file? The documents that Durham Tech’s Financial Aid office can now accept to verify your tax information have changed based on policy changes from the U.S. Department of Education. Please note that either a tax transcript from the IRS or an updated FAFSA using the IRS Data Retrieval Tool are the only two ways to verify tax data starting with the 2012-13 academic year. We can no longer accept signed tax returns from tax preparers as we have in previous years. If you do not, or cannot, use the IRS Data Retrieval Tool and your taxes are required to complete your file, you will be required to obtain a tax transcript from the IRS. IRS tax transcripts may be obtained by using the following link: http://www.irs.gov/individuals/article/0,,id=232168,00.html?portlet=105

    You may also call 1-800-908-9946, select "Option 2" and enter "2011" to request an IRS Tax transcript.  Using the IRS Data Retrieval Tool to populate your FAFSA tax information will make the verification process more efficient because the tax information will be verified by the IRS Data Retrieval.

  4. Are you just starting the FAFSA but not planning to file taxes or haven’t yet filed taxes? If you have not yet filed your taxes with the IRS or are not required to file a tax return, go ahead and file your 2012-2013 FAFSA now so that you can meet the priority date. Once you have filed your 2011 tax return, wait 2 weeks after you electronically filed (up to 8 weeks if paper) and then log into your FAFSA at www.fafsa.ed.gov and make a correction to use the IRS Data Retrieval Tool to update your tax information. If you were not required to file a tax return you will not be able to use the IRS Data Retrieval Tool.

If you would like further information on the new regulations please see the federal Budget Control Act of 2011, and the federal Consolidated Appropriations Act, 2012.

 


Durham Technical Community College
1637 East Lawson Street
Durham, NC 27703
919-536-7200

Copyright ©Durham Technical Community College. All Rights Reserved.
Privacy Policy l Conditions of Use