Financial Aid News
NEW Interest Rates for Direct Loans
|Direct Subsidized Loan (Undergraduates)||4.66%|
|Direct Unsubsidized Loan (Undergraduates)||4.66%|
|Direct Unsubsidized Loan (Graduate/Professional Students)||6.21%|
|Direct PLUS Loans (Parents and/or Graduate or Professional Students)||7.21%|
In addition, student and parent loan interest rates will have a maximum cap:
- 8.25 percent for Undergraduate Direct Loans
- 9.5 percent for Graduate Direct Loans
- 10.5 for PLUS Direct Loans
Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers
For first time Federal student loan borrowers on or after July 1, 2013, there is a limit on the time you can receive a Direct Subsidized loan. Subsidized loan eligibility will be limited to 150 percent of the published length of your academic program. After you have received Direct Subsidized loans for your maximum eligibility period, you will only be eligible to borrow Direct Unsubsidized loans. In addition, if you continue to be enrolled in an undergraduate program after receiving the maximum Direct Subsidized Loans, you will be responsible for the interest that accrues on your subsidized loans.
Middle Class Scholarship
The NEW California Middle Class Scholarship provides a scholarship to undergraduate students with a family income of up to $150,000. The student must be enrolled at a California State University or University of California and be a CA resident or eligible AB 540 student. The student must file a FAFSA or California Dream Application by the March 2 deadline. For more complete information on the program and eligibility, requirements please visit the California Student Aid Commission website.
New Loan Fees
Changes to Direct Loan (DL) Stafford Loans first disbursed after December 1, 2013 will take place due to the Budget Control Act of 2011, which put into place automatic federal budget cuts (known as sequester), to take effect if Congress failed to enact legislation to reduce the federal deficit by March 1, 2013. The loan origination fees for the DL Subsidized and DL Unsubsidized Loans, 1.051%, will increase to 1.072% and 4.288 percent for Direct PLUS loans (for both Parent and Graduate PLUS Loans).
2013-2014 DL Stafford Loans not accepted by November 15, 2013 will be adjusted to reflect the higher loan origination fees brought on by the Sequestration. If you are a first time borrower, you must also complete the Entrance Counseling and Master Promissory Note requirements on www.studentloans.gov. The Financial Aid & Scholarships will be reviewing all loan records and making the appropriate changes during the weeks of Nov. 18th through Dec. 1st. Students may not be able to submit any loan changes via the myCI portal during this time period. Please contact our office if you have any questions regarding your loan status or wish to make any changes to your DL Stafford Loan.
Impact of Sequestration on Federal Student Aid
On August 2, 2011, Congress passed the Budget Control Act of 2011, which put into place automatic federal budget cuts, known as a “sequester,” to take effect if Congress failed to enact legislation to reduce the federal deficit by March 1, 2013. Because Congress did not act, the budget cuts went into effect on March 1, 2013. Learn about the impact of sequestration on Federal Student Aid programs.
New Rules for State University Grant Eligibility
The CSU has endorsed changes to the rules for awarding State University Grants. To be eligible to receive a State University Grant beginning in Fall 2013, students must meet the following criteria:
- Be enrolled at least half-time;
- Undergraduate students cannot have accumulated more than 150 semester units;
- Undergraduate transfer students cannot have accumulated more than 75 semester units at the CSU;
- Credential students cannot accumulate more than 30 units.
- Masters students cannot accumulate more than 125% of the required units.
- Students pursuing a second Bachelor’s, second Credential or second Master’s degree are not SUG eligible regardless of where they received their previous degree(s).
- Due to limited funding, CSU Channel Islands reserves the right to primarily award
available SUG funds to first-time Undergraduate students and does not award SUG funds
to Credential or Graduate students.
Please note: Advanced Placement, international Baccalaureate, Military credit and Pre-baccalaureate credit and credit by examination will not count against the new SUG limits.
Enrollment Status Change Notification
The Financial Aid & Scholarships Office is pleased to announce a change in the enrollment status change process. Students are no longer required to submit the Enrollment Status Change Notification form effective Fall 2013. We have implemented a new automated process to track enrollment changes, which will prorate grants for students enrolled less than full-time. Please note, you must be enrolled at least half-time to remain eligible for a loan (Undergraduate/Credential 6 units; Graduate 4 units) and for most grants.
Federal Pell Grant Program – Duration of Eligibility
Once you have received a Pell Grant for 12 semesters, or the equivalent, you will no longer be eligible for additional Pell Grants.
- You are eligible to receive a Pell Grant for up to 12 semesters or the equivalent. If you have exceeded the 12-semester maximum, you will lose eligibility for additional Pell Grants beginning in the 2012-13 school year. Equivalency is calculated by adding together the percentage of your Pell eligibility that you received each year to determine whether the total amount exceeds 600%.
- For example, if your maximum Pell Grant award amount for the 2013-2014 school year was $5,645, but you only receive $2,823 because you were only enrolled for one semester, you would have used 50% of your maximum award for that year. If in the following school year, you were enrolled only three-quarter time each semester, you would have used 75% of your maximum award for that year. Together, you would have received 125% out of the total 600% lifetime limit.
If you have any questions about how these changes could affect you, please contact the Financial Aid Office or call 1-800-4-FED-AID
*Our primary form of communication is via email. Students must check their CI email for important notices and updates.