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College Talk Blog

Sequestration is going to cost parents and students more this fall

It's official, sequestration is going to cost parents and students who participate in loan and grant programs in the fall of 2013. Specifically, the US Department of Education has announced that fees charged to originate Direct Student Loans and PLUS loans will have slightly higher fees.  Student origination fees will rise from 1.0% to 1.051%. Parent loan origination fees will rise from 4.0% to 4.204%.
 
In addition to the increase in fees paid by student and parent borrowers, families with children in college who participate in grant programs may feel the impact of sequestration.  The amount of funding for two major grant programs, FSEOG and Federal Work Study, have been decreased. The decrease will mean that there will be fewer FSEOG and Federal Work Study grants awarded and awards may be lower.

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