Effective: 2013-2014 Aid Year
Unusual Enrollment History (UEH)
Beginning in 2013-2014, some Free Applications for Federal Student Aid (FAFSAs) will be flagged for "unusual enrollment history" by the U. S. Department of Education as a result of the student having received federal Pell Grant funds at multiple institutions in recent years. Flags "2" and "3" require the current institution review the student's enrollment history and determine whether or not the student is enrolling only long enough to receive cash refunds of federal student aid.
NOTE: The Auburn Montgomery Financial Aid Office, in the process of reviewing a student’s UEH flag, will check the National Student Loan Data System (NSLDS) for complete enrollment history (i.e., name of each school attended during the 2010-2011, 2011-2012, and 2012-2013 academic years – the review period – and dates of attendance).
How to resolve: All students with UEH flag 3 and some students with UEH flag 2 will be required to provide to the Auburn Montgomery Financial Aid Office their academic transcripts (official or unofficial) from all colleges and universities attended during the review period. If Pell Grants were received and credit hours (passing grades: A - D) were not earned at each institution attended during these award years, the student may be determined ineligible for further federal financial aid. The Financial Aid Office has the authority to require an official academic transcript from any/all colleges attended during the review period if the documents you submit are unclear. If your Student Aid Report (SAR) includes UEH flag 3, please complete the Unusual Enrollment History Worksheet and submit to the Auburn Montgomery Financial Aid Office along with all required documentation. If your SAR includes UEH flag 2, Auburn Montgomery will notify you if you will be required to complete the Unusual Enrollment History Review form.
Appealing the ineligibility determination: if a student has been determined by Auburn Montgomery to be ineligible for federal student aid on the basis of (or lack of) documentation, he/she may appeal the determination by submitting a written appeal, along with supporting documentation, outlining the extenuating circumstances leading to the student's failure to earn academic credit for previous academic years.
Regaining federal student aid eligibility: Students whose aid eligibility is denied as a result of their UEH can be re-considered for federal student aid after meeting with an academic advisor, enrolling for three academic terms only in courses that are required by their program, not dropping or withdrawing from (officially or unofficially) any courses after the term begins, and meeting the University’s standards of Satisfactory Academic Progress (SAP). To review the complete SAP policy, visit http://www.aum.edu/admissions/financial-information/financial-aid/satisfactory-academic-progress-policy.
Effective: 2012-2013 Aid Year
As a result of recent legislative changes, you should be aware of a number of new requirements for the federal student aid programs that became effective July 1, 2012.
Below is an overview of the changes that were effective for the 2012-2013 school year (July 1, 2012 through June 30, 2013) and in the future.
Expected Family Contribution
The lower a student's Expected Family Contribution (EFC), the higher the student's federal student aid eligibility. A change has been made to the income amount that is used to determine if a student qualifies for an automatic EFC of zero.
When you complete the Free Application for Federal Student Aid (FAFSA), you receive an Expected Family Contribution, which is a number used to determine your federal student aid eligibility. For the 2012-13 school year, you automatically qualify for an Expected Family Contribution of zero if your family income does not exceed $23,000. This is a reduction from the previous maximum income of $32,000.
Federal Pell Grant Program — Duration of Eligibility
Once you have received a Pell Grant for 12 semesters, or the equivalent, you are no longer 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 lose eligibility for additional Pell Grants beginning in 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 2010-2011 school year was $5,550, but you only receive $2,775 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, 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.
Direct Student Loan Changes
Direct Subsidized Loans are not eligible for an interest subsidy during the six-month grace period.
Subsidized loans are loans for which the borrower is not responsible for the interest while the student is enrolled in college on at least a half-time basis, when the loan is in the six-month grace period after the student is no longer enrolled at least half time, or if the loan is in a deferment status. This provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. If you receive a subsidized loan during this timeframe, you are responsible for the interest that accrues while your loan is in the grace period. You do not have to make payments during the grace period (unless you choose to) but the interest will be added (capitalized) to the principal amount of your loan when the grace period ends. This provision does not eliminate the interest subsidy while the borrower is in school or during eligible periods of deferment.
Subsidized loans made to undergraduate students.
Subsidized loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2013 have a 3.4% fixed interest rate.
Graduate and professional students are no longer eligible to receive subsidized loans.
Effective for loans made for payment periods that begin on or after July 1, 2012, graduate and professional students are no longer eligible to receive subsidized loans. However, if you are a graduate or professional student, you may still qualify for up to $20,500 in unsubsidized loans each year.
The U.S. Department of Education can no longer offer borrowers repayment incentives.
Effective for loans first disbursed on or after July 1, 2012, the Department of Education is prohibited from offering any repayment incentives to Direct Loan borrowers, except interest rate reductions to borrowers who agree to have payments automatically electronically debited from their bank account).