Significant changes to the federal financial aid system, specifically Pell Grants, will impact students beginning this fall, but Mid-South Community College is already working to meet the new challenges.
“We are doing everything we can to make our students aware of these changes and to help them make informed decisions about their futures,” said LeChelle Davenport, MSCC Director of Financial Aid. “We’re hoping this new legislation will not put an undue burden on any of our students, and we are prepared to do everything possible to help people who are serious about starting or continuing their education.”
Students planning to attend college in the fall should apply for 2012-13 federal financial aid as soon as possible. The Department of Education has been accepting applications since Jan. 1.
“We always encourage students to apply as early as possible, but this year, it’s more important than ever,” Davenport pointed out. “If any of the new regulations become problematic for our students, we will have time to help them develop a plan for continuing their education.”
The maximum Pell Grant will remain at its current level of $5,550, but the income threshold for a full award has changed. Thus, fewer students will automatically qualify for the top amount.
Students receiving federal assistance will also be expected to finish their programs of study a little faster. In addition to applying to new students, the limitation will affect continuing ones as well. Some students who would have been eligible under the old guidelines may no longer receive an award if they have exceeded the number of semesters specified in the new law.
“This particular change is retroactive, so it has the greatest potential of adversely affecting some of our students,” Davenport pointed out. The law eliminated any grandfathering for this provision, so all students will be subject to the new guidelines beginning July 1, 2012.
For example, a student who has attended full-time for a full year will have received 100 percent of his scheduled award for that year. If that same student receives payments for halftime attendance during the next full academic year (two semesters at MSCC), he or she will have received 50 percent of his scheduled award. At the end of the two years, this student’s “lifetime eligibility used” (LEU) is 150 percent. Once a student’s LEU equals or exceeds 600 percent, he or she will no longer be eligible to receive Pell Grant funds.
Other financial aid changes include more stringent Satisfactory Academic Progress standards, a more restrictive rule on retaking coursework, and the elimination of eligibility for students who have not earned a high school diploma or its equivalent or who have not been home schooled.
Students/parents completing the free application will also be strongly encouraged to use the IRS Data Retrieval Program which will automatically insert the figures from the family’s current tax return. If selected for verification, paper copies of tax returns will no longer be accepted for the verification process.
With the cost of college continuing to climb, demand for financial aid has reached an all-time high, putting a strain on the federal budget. More than nine million students received Pell Grants in 2011, and Congress enacted the new legislation to bridge a billion-dollar gap between expenditures and the budget.
Pell Grants are usually a foundation of financial aid, to which aid from other federal and nonfederal sources might be added. While students squeezed by the new regulations may be tempted to abandon their dream, they should not do so before exploring every other avenue, Davenport said.
“We want our students to make the best decisions possible, and dropping out of school is usually not a good one,” she said. “If our students take a proactive approach, we can strategize with them and help them figure out how to reach their goals.”
For information about financial aid options at MSCC, please call (870) 733-6729, email finaid@midsouthcc.edu, or see the website at www.midsouthcc.edu.
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