Federal sequester rules affect financial aid - the Vindicator.com

Lee College students are experiencing the effects of federal budget cuts triggered by the March 1 sequester, and financial aid officials are doing their best to help students understand the changes. “Because of the sequester, origination fees associated with Direct Stafford loans and parent loans for undergraduate students are going to increase,” explained Lee College Financial Aid Director Sharon Mullins. “These increases will reduce the amount of money students or parents receive. “For example, say a student takes out a $3,500 Direct Stafford loan,” she continued. “As a result of sequestration, origination fees on this loan have increased to 1.051% (an increase of 0.51%), meaning the student will pay a $37 fee on this loan. As such, when a student receives their award, it will only be for $3,463.” http://www.thevindicator.com/school/article_7686888c-9899-11e2-9e9e-001a4bcf887a.html