Summary of Recent Aid Changes
Federal Student Aid Changes State Student Aid ChangesSubsidized Loan Eligibility California Dream Act
Unusual Enrollment History Community College Transfer Entitlement
Pell Grant Eligibility
Federal Student Aid Changes
Subsidized Loan Eligibility
Maximum Eligibility Period for Direct Subsidized Loans (effective July 1, 2013)
Beginning with first-time borrowers after July 1, 2013, the U. S. Department of Education is regulating the maximum period of time (measured in academic years) that a student can receive Direct Subsidized Loans. The "maximum eligibility period" may not extend beyond 150% of the published length of a student's academic program, as officially described in the Butte College Catalog.
Because the maximum eligibility period is based on the published length of a student's current program, this means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will count against your new maximum eligibility period.
Components of New Loan Eligibility Policy
- Maximum Eligibility Period (MEP) - 150% of the published length of the Academic Program in which the student borrower is currently enrolled
- Subsidized Usage Period (SUP) – Period of time for which a borrower received Direct Subsidized Loans
- Remaining Eligibility Period (REP) – Difference between the Maximum Eligibility Period and the total of all Subsidized Usage Periods (if more than one loan)
Loss of Eligibility for Additional Direct Subsidized Loans
After you have received Direct Subsidized Loans for your maximum eligibility period, you are no longer eligible to receive additional Direct Subsidized Loans. You may continue to receive Direct Unsubsidized Loans.
Loss of Interest Subsidy: Responsibility for Paying Interest on Direct Subsidized Loans
If you continue to be enrolled in any undergraduate program after you have received Direct Subsidized Loans for your maximum eligibility period, the Department of Education will not pay the interest that accrues on your Direct Subsidized Loans. You are responsible for the interest that accrues on your Direct Subsidized Loans, from the date of your enrollment after meeting the 150%. Your federal loan servicer will notify you if you become responsible for paying the interest.
Regaining Eligibility for Direct Subsidized Loans
A student may again become eligible to receive Direct Subsidized Loans if enrolling in a new program that is longer than the previous one. In this case, the Department of Education will pay the interest that accrues on any new loans within eligible pay periods.
Example of how "Maximum Eligibility Period" Works
2-year AA/AS program
Maximum Eligibility Period for subsidized loans =3 years (150% of 2 years = 3 years)
Also see www.studentaid.gov on "Is there a time limit on how long I can receive loans?"
Unusual Enrollment History
New FAFSA Edit Added (effective July 1, 2013)
During processing, a student's FAFSA may be selected for verification of eligibility due to a possible enrollment pattern problem. The student will be notified by our office through email to their Butte College student email account if such an issue exists.
Additional Items to be Verified (effective July 1, 2013)
- High School Completion Status. Certain applicants are required to verify their high school completion status through documentation of high school diploma, recognized equivalent of high school diploma, or homeschool.
- Identity/Statement of Educational Purpose. Some applicants are required to verify their identities and resubmit a Statement of Educational Purpose, as was originally provided as part of the FAFSA submission.
Pell Grant Eligibility
Duration of Eligibility (effective July 1, 2012)
Beginning with the 2012-2013 academic year, the U.S. Department of Education regulates the duration of an undergraduate student's eligibility to receive a Federal Pell Grant. Duration of eligibility may not exceed 600%, or 12 full-time semesters (or the equivalent). This provision applies to all Federal Pell Grant-eligible students.
How "Duration of Eligibility" Works
A student eligible for Pell Grant has 6 years (12 full-time semesters) or 600% of total Pell Grant lifetime eligibility. This includes all years Pell was ever received at all colleges ever attended, at any time, prior to Fall 2012. All the years each student has received Federal Pell Grant will be counted toward the 6 years, regardless of when the student began receiving aid.
Verifying Lifetime Eligibility Used (LEU)
Students can log on to the National Student Loan Data System (NSLDS), using their Federal Student Aid ID (FSA ID), to view their LEU. The LEU will be found on the Financial Aid Review page. Students may use NSLDS to track the amount of Pell they have received, their percentage of Pell Lifetime Eligibility Used (LEU), as well as loan history and grant overpayment status. With loans, students may view how much they owe and obtain the loan servicer information for each loan.
The Butte College Financial Aid Office will continue processing each eligible student's Pell Grant unless he or she notifies the Financial Aid Office not to do so. If a student is close to the 600% limit and does not want to utilize their Pell Grant at Butte College, they must notify the Financial Aid Office by submitting a signed Decline Pell Grant Form (available in July). The student's eligibility for other aid is not affected and the Board of Governor's Fee Waiver (BOGFW) will waive enrollment fees for students who are eligible. Forms submitted after the college has started to process the student's Pell funds CANNOT be honored.
Also see www.studentaid.gov on "How is my Federal Pell Grant Lifetime Eligibility Used (LEU) calculated?"
State Student Aid Changes
California Dream Act
The California Dream Act is the result of two bills, Assembly Bill 130 (AB 130 pertaining to Scholarships) and Assembly Bill 131 (AB 131 pertaining to Grants). Together, these bills allow eligible undocumented and non-resident citizens who meet specific provisions of AB 540 to apply for and receive Cal Grants and Board of Governors Fee Waivers (BOGFW) at community colleges as well as institutional aid at California colleges and universities.
AB 540 Requirements: Initial Process To Be Completed at Admissions & Records
AB 540 status requires a student to demonstrate the following:
- Must have attended a California high school for a minimum of three years;
- Must have graduated from a California high school, obtained a GED, or passed the California High School Proficiency Examination (CHSPE);
- Must be registered or enrolled at a California community college; and
- If required, must have completed an affidavit confirming you have filed for legal immigration status (or will when you are eligible to do so).
How to Apply
1. If you are a U.S. citizen or eligible non-citizen, complete and submit the Free Application for Federal Student Aid (FAFSA), not the California Dream Act Application.
2. If you are an undocumented non-citizen, or a student who has completed the Deferred Action for Childhood Arrivals (DACA) process, you are eligible for state aid-only. Complete the California Dream Act Application, not the FAFSA.
Also see information at AB 540 Students and Dream Act.
Community College Transfer Entitlement Award
NEW -- To be eligible to receive a Community College Transfer Cal Grant Entitlement Award, a Cal Grant recipient must have attended a community college in the academic year immediately preceding the year for which the award applies. A student who attended a community college in the 2013-2014 academic year may apply for a Transfer Entitlement Award for 2014-2015.
Also see California Student Aid Commission (CSAC).