Section 501- Federal Pell Grants
Changes to the Higher Education Act of 1965 take place; in order to comment on them I would have to read that specific bill and see what the apparent funding changes actually refer to.
Sec. 502- Termination of Authority to Make Interest-Subsidized Loans to Graduate and Professional Students
Again, one would have to reference the aforementioned Section 501 act, but it seems as if...
- After July 1, 2012, no grad/professional student will be eligible for Federal Direct Stafford Loans (Sec. 502, (a)(1).)
- ...Unless you're studying the right major, which is listed in Paragraph 3 or 4B under 484b of the Higher Education Act of 1965.
- The most you could borrow from Unsubsidized Stafford Loans would be the maximum amount as set by (481(a)(2)) of the Higher Ed Act, plus an amount equal to the amount of Subsidized loans you could have gotten if (502(3)(ii)) hadn't been written into the 2011 Budget Bill. Um, what?
Sec. 503- Termination of Direct Loan Repayment Incentives
- Again, they go and amend the Higher Education Act by changing its language in certain parts, pursuant to their new July 1, 2012 deadline for loan changes. But that notwithstanding, after that date, new applicants for loans will not be eligible for repayment incentives of any kind (including reductions in interest, origination fees (?), etc).
- ...Unless the student agrees to have loan payments automatically withdrawn from a bank account (as opposed to mailing a check). If they agree to that, it seems like incentives like interest rate reduction are still on the table.
Section 504- Inapplicability of Title IV Negotiated Rulemaking and Master Calendar Exception
Certain sections of the Higher Ed Act (482(c) and 492) don't apply to this bill.
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