Important information for students regarding government sequestration
Posted on Monday, April 15, 2013
Sequestration is an across-the-board cutting mechanism that will impact most federal government programs. It is designed to reduce the deficit and is scheduled to occur over 10 years. Sequestration is the result of the Super Committee’s failure to reach an agreement on a deficit reduction deal in 2011. It became effective Friday, March 1, 2013.
What students and families need to know about sequestration:
The sequestration will cut federal student aid programs during the first year by an estimated 5.1 percent. Programs affected by the cuts are Federal Work Study (FWS), Supplemental Opportunity Grant (FSEOG), and TEACH Grant.
Direct Loan origination fees are expected to increase from 1.00 to 1.05 percent and Plus Loan origination fees to increase from 4.00 to 4.20 percent.
Awards amounts for 2013-2014 for FWS, FSEOG, TEACH Grant and loan origination fees are subject to change based on federal funding. The Department of Education is continuing to work with Congress to determine the funding allocations.
The Texas Higher Education Coordinating Board has announced that the award amounts for the Tuition Equalization Grant (TEG) will be reduced. The maximum award amount a student could possibly receive for the 2013-2014 academic year is $3,230. All students will see a reduction in their annual award.
It is imperative that all students complete their 2013-2014 FAFSA by May 1, 2013.
For more information on sequestration, contact the Financial Aid Office.