Previous Financial Aid News and Updates

Federal Direct Student Loans 2018-2019 Interest Rates Effective for Loans First Disbursed on or after July 1, 2018 and prior to July 1, 2019
Loan Type	Borrower Type	Fixed Interest Rate
Direct Subsidized Loans	Undergraduate Students	5.045%
Direct Unsubsidized Loans	Undergraduate Students	5.045%
Direct Unsubsidized Loans	Graduate/Professional Students	6.595%
Direct PLUS  Loans	Parents of Dependent Undergraduate Students and Graduate/Professional Students	7.595%

The FAFSA for the 2017-2018 award year can be filed three months earlier than ever before on October 1, 2016.

The 2017-2018 FAFSA will be using the 2015 income information so you do not have to wait until the end of the year to complete the application. You will no longer need to estimate income and tax information since you will be able to retrieve the data directly from the IRS, right from the first day the FAFSA is available. You can simply use the IRS Data Retrieval Tool (IRS DRT) to update your FAFSA with IRS tax return information. Get it out of the way and get it done before the holiday break!

The chart below is a helpful guide on when you can file each year’s FAFSA and what year’s income you can use.

IF YOU PLAN TO ATTEND COLLEGE FROM	YOU WILL SUBMIT THIS FAFSA	YOU CAN SUBMIT THE FAFSA FROM	USING INCOME AND TAX INFORMATION FROM
JULY 1, 2016 – JUNE 30, 2017	2016–17	JANUARY 1, 2016 – Through the end of Spring 2017 term	2015
JULY 1, 2017 – JUNE 30, 2018	2017–18	OCTOBER 1, 2016 – Through the end of Spring 2018 term	2015
JULY 1, 2018 – JUNE 30, 2019	2018–19	OCTOBER 1, 2017 – Through the end of Spring 2019 term	2016

If you have questions about the FSA ID, you can find the answers to frequently asked questions here. If you need assistance logging in with your FSA ID, contact us at 1-800-4-FED-AID (1-800-433-3243).

Student loan origination fees are increasing! Increased origination fees mean decreased disbursements of your loans. The Department of Education has released information indicating the Stafford Direct Loan student origination fee will increase for loans first disbursed after October 1, 2016. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will be 1.069%. With such an increase, for example, the fee on a loan for $5,500 would increase to $58.74 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.276%. With such an increase, for example, the fee on a $10,000 Direct PLUS loan would increase to $427.60.

The following chart shows the sequester-required loan fees for FY 2016 and FY 2017.

Direct Loan Fees for FY 2016 and FY 2017
Loan Type	Impacted Loans	Loan Fee Percent	Fee Example
Direct Subsidized Loans and Direct Unsubsidized Loans	FY 2016 First disbursed on or after October 1, 2015 and before October 1, 2016	1.068	$58.74 on a $5,500 loan
	FY 2017 First disbursed on or after October 1, 2016 and before October 1, 2017	1.069	$58.79 on a $5,500 loan
Direct PLUS Loans (Parent and Grad/Prof Student	FY 2016 First disbursed on or after October 1, 2015 and before October 1, 2016	4.272	$427.20 on a $10,000 loan
	FY 2017 First disbursed on or after October 1, 2016 and before October 1, 2017	4.276	$427.60 on a $10,000 loan
Loan fee calculations that result in more than two decimal places must be truncated (not rounded) to two digits after the decimal point (cents).

TEACH Grants first disbursed after October 1, 2016 will be reduced by 6.9% percent. A student who was eligible to receive the full TEACH Grant Scheduled Award amount of $4,000 would have the award reduced by $276 ($4,000 x 6.9%), resulting in an award amount of $3,724.

The following chart shows the FY 2016 and FY 2017 sequester required TEACH Grant Program reductions as they apply to the 2015-2016 and 2016-2017 award years.

TEACH Grant Awards
Award Year	Impacted Awards	Statutory Maximum Scheduled Award Amount	Percentage Reduction from Statutory Award Amount	Dollar Reduction Amount from Maximum Award Amount	Adjusted Maximum Award Amount
2015-2016	First disbursed prior to October 1, 2015 (FY 2015 Sequester)	$4,000	7.30%	$292.00	$3,708.00
	First disbursed on or after October 1, 2015 and before October 1, 2016 (FY 2016 Sequester)	$4,000	6.80%	$272.00	$3,728.00
2016-2017	First disbursed on or after October 1, 2015 and before October 1, 2016 (FY 2016 Sequester)	$4,000	6.80%	$272.00	$3,728.00
	First disbursed on or after October 1, 2016 and before October 1, 2017 (FY 2017 Sequester)	$4,000	6.90%	$276.00	$3,724.00

Beginning October 1, 2016, the 2017-18 TAP application will become available to all eligible students. Students and, if necessary, parents will be required to input prior-prior year information, also known as PPY, onto the TAP application. Tax information for two years prior will be required for all subsequent TAP applications.

What does this mean?
TAP awards for the 2017-18 aid year will be based on 2015 New York State Taxable Income. For more information, please visit https://www.hofstra.edu/sfs/financialaid/financialaid_tap_qa.html

IF YOU PLAN TO ATTEND COLLEGE FROM	YOU WILL SUBMIT THIS FAFSA	YOU CAN SUBMIT THE FAFSA FROM	USING INCOME AND TAX INFORMATION FROM
JULY 1, 2016 – JUNE 30, 2017	2016–17	JANUARY 1, 2016 – JUNE 30, 2017	2015
JULY 1, 2017 – JUNE 30, 2018	2017–18	OCTOBER 1, 2016 – JUNE 30, 2018	2015
JULY 1, 2018 – JUNE 30, 2019	2018–19	OCTOBER 1, 2017 – JUNE 30, 2019	2016

Federal Direct Student Loans 2016-2017 Interest Rates Effective for Loans First Disbursed on or after July 1, 2016 and prior to July 1, 2017
Loan Type	Borrower Type	Fixed Interest Rate
Direct Subsidized Loans	Undergraduate Students	3.76%
Direct Unsubsidized Loans	Undergraduate Students	3.76%
Direct Unsubsidized Loans	Graduate/Professional Students	5.31%
Direct PLUS  Loans	Parents of Dependent Undergraduate Students and Graduate/Professional Students	6.31%

Federal Direct Student Loans 2015-2016 Interest Rates Effective for Loans First Disbursed on or after July 1, 2015 and prior to July 1, 2016
Loan Type	Borrower Type	Fixed Interest Rate
Direct Subsidized Loans	Undergraduate Students	4.29%
Direct Unsubsidized Loans	Undergraduate Students	4.29%
Direct Unsubsidized Loans	Graduate/Professional Students	5.84%
Direct PLUS  Loans	Parents of Dependent Undergraduate Students and Graduate/Professional Students	6.84%

Direct Loan Fees for FY 2015 and FY 2016
Loan Type	Impacted Loans	Loan Fee Percent	Fee Example
Direct Subsidized Loans and Direct Unsubsidized Loans	FY 2015 First disbursed on or after October 1, 2014 and before October 1, 2015	1.073	$59.01 on a $5,500 loan
	FY 2016 First disbursed on or after October 1, 2015 and before October 1, 2016	1.068	$58.74 on a $5,500 loan
Direct PLUS Loans (Parent and Grad/Prof Student	FY 2015 First disbursed on or after October 1, 2014 and before October 1, 2015	4.292	$429.20 on a $10,000 loan
	FY 2016 First disbursed on or after October 1, 2015 and before October 1, 2016	4.272	$427.20 on a $10,000 loan
Loan fee calculations that result in more than two decimal places must be truncated (not rounded) to two digits after the decimal point (cents).

A TEACH Grant where the first disbursement is on or after October 1, 2015 and before October 1, 2016 requires a reduction of 6.8 percent from the award amount for which the student would otherwise have been eligible.

The following chart shows the FY 2015 and FY 2016 sequester required TEACH Grant Program reductions as they apply to the 2014-2015 and 2015-2016 award years.

TEACH Grant Awards
Award Year	Impacted Awards	Statutory Maximum Scheduled Award Amount	Percentage Reduction from Statutory Award Amount	Dollar Reduction Amount from Maximum Award Amount	Adjusted Maximum Award Amount
2014-2015	First disbursed prior to October 1, 2014 (FY 2014 Sequester)	$4,000	0.89%	$35.60	$3,964.40
	First disbursed on or after October 1, 2014 and before October 1, 2015 (FY 2015 Sequester)	$4,000	7.30%	$292.00	$3,708.00
2015-2016	First disbursed on or after October 1, 2014 and before October 1, 2015 (FY 2015 Sequester)	$4,000	7.30%	$292.00	$3,708.00
	First disbursed on or after October 1, 2015 and before October 1, 2016 (FY 2016 Sequester)	$4,000	6.80%	$272.00	$3,728.00

Iraq-Afghanistan Service Grants

An Iraq-Afghanistan Service Grant where the first disbursement is on or after October 1, 2015 and before October 1, 2016 requires a reduction of 6.8 percent from the award amount for which the student would otherwise have been eligible (i.e., the maximum Federal Pell Grant award amount for the relevant award year). Hofstra does not currently have any student enrolled for the 2013-2014 award year that is eligible for this grant.

The chart below displays the resultant interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2014 and before July 1, 2015.

Federal Direct Student Loans 2014-2015 Interest Rates Effective for Loans First Disbursed on or after July 1, 2014 and  prior to July 1, 2015
Loan Type	Borrower Type	Index Fixed Interest Rate 10-Year Treasury Note	Add-On	Fixed Interest Rate
Direct Subsidized Loans	Undergraduate Students	2.612%	2.05%	4.66%
Direct Unsubsidized Loans	Undergraduate Students	2.612%	2.05%	4.66%
Direct Unsubsidized Loans	Graduate/Professional Students	2.612%	3.60%	6.21%
Direct PLUS  Loans	Parents of Dependent Undergraduate Students and Graduate/Professional Students	2.612%	4.60%	7.21%

1) Student loan origination fees are increasing! Increased origination fees mean decreased disbursements of your loans. The Department of Education has released information indicating the Stafford Direct Loan student origination fee will increase for loans first disbursed after October 1, 2014. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will be 1.073%. With such an increase, for example, the fee on a loan for $5,500 would increase to $59.01 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.292%. With such an increase, for example, the fee on a $10,000 Direct PLUS loan would increase to $429.20.

The following chart displays the sequester required loan fees for both the FY 2014 and FY 2015.

Direct Loan Fees for FY 2014 and FY 2015

Loan Type	Impacted Loans	Loan Fee Percent	Fee Example
Direct Subsidized Loans and Direct Unsubsidized Loans	FY 2014 First disbursed on or after  December 1, 2013 and  before October 1, 2014	1.072	$58.96 on a $5,500 loan
	FY 2015 First disbursed on or after October 1, 2014 and before October 1, 2015	1.073	$59.01 on a $5,500 loan
Direct PLUS Loans (Parent and Grad/Prof Student)	FY 2014 First disbursed on or after December 1, 2013 and before October 1, 2014	4.288	$428.80 on a $10,000 loan
	FY 2015 First disbursed on or after  October 1, 2014 and  before October 1, 2015	4.292	$429.20 on a $10,000 loan
Loan fee calculations that result in more than two decimal points must be truncated (not rounded) to two decimal points (cents).

2) TEACH Grants first disbursed after October 1, 2014 will be reduced by 7.3% percent. A student who was eligible to receive the full TEACH Grant Scheduled Award amount of $4,000 would have the award reduced by $292 ($4,000 x 7.3%), resulting in an award amount of $3,708.

TEACH Grant Awards

Award Year	Impacted Awards	Statutory Maximum Scheduled Award Amount	Percentage Reduction from Statutory Award Amount	Dollar Reduction Amount	Adjusted Maximum Scheduled Award Amount
2014-2015	First Disbursed on or  after October 1, 2013 and  Before October 1, 2014  (FY 2014 Sequester)	$4,000	0.89%	$35.60	$3,964.60
	First Disbursed on or  after October 1, 2014 and  Before October 1, 2015  (FY 2015 Sequester)	$4,000	7.30%	$292	$3,708.00

3) Any Iraq-Afghanistan Service Grant award where the first disbursement is made after October 1, 2014 must be reduced by 7.3 percent from the award amount for which the student would otherwise have been eligible to receive. Hofstra does not currently have any student enrolled for the 2013-2014 award year that is eligible for this grant.

1. You will see increases to your student loan origination fees. Increased origination fees means decreased disbursements of your loans. The Department of Education has released information indicating the Stafford Direct Loan student origination fee will increase for loans first disbursed after December 1, 2013 to 1.072 percent. With such an increase, for example, the fee on a loan for $5,500 would increase to $58.96. The Parent and Graduate PLUS loan origination fees will also increase to 4.288 percent. With such an increase, for example, the fee on a $10,000 Direct PLUS loan would increase to $428.80. (updated October 28, 2013)
2. TEACH Grants first disbursed after October 1, 2013 will be reduced by 0.89% percent. A student who was eligible to receive the full TEACH Grant Scheduled Award amount of $4,000 would have the award reduced by $35.6  ($4,000 x 0.89%), resulting in an award amount of $3,964.40. Schools were originally notified that the reduction would be 7.2 percent. (updated January 2, 2014)
3. Any Iraq-Afghanistan Service Grant award where the first disbursement is made after October 1, 2013 must be reduced by 7.2 percent from the award amount for which the student would otherwise have been eligible to receive.  Hofstra does not currently have any student enrolled for the 2013-2014 award year that is eligible for this grant.   (updated October 28, 2013)

Get more information..

On July 6, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21) (Public Law 112-141) was enacted which added a new provision to the Direct Loan statutory requirements (see HEA section 455(q)) that limits a first-time borrower's eligibility for Direct Subsidized Loans to a period not to exceed 150 percent of the length of the borrower's educational program.

Get more information on what this means to you.

What is sequestration?

Sequestration is an across-the-board spending cut mechanism utilized by the federal government that will impact most defense and non-defense discretionary programs. It is designed specifically as a deficit reduction measure and is scheduled to occur over 10 years. Sequestration is the result of the Super Committee's failure to reach an agreement on a deficit reduction deal in 2011.

What does sequestration mean to your financial aid?

1. You will see increases to your student loan origination fees. Increased origination fees means decreased disbursements of your loans. The Department of Education has released information indicating the Stafford Direct Loan student origination fee will increase from 1 percent to 1.051 percent. With such an increase, for example, the fee on a loan for $5,500 would increase from $55 to $57.80, an increase of $2.80. The Parent and Graduate PLUS loan origination fees will also increase from 4 percent to 4.204 percent. With such an increase, for example, the fee on a $10,000 Direct PLUS loan would increase from $400 to $420.40, an increase of $20.40.
2. There will less campus-based funding available for the 2013-2014 award year. Funds provided by the federal government for the Supplemental Educational Opportunity Grant (SEOG) and the Federal Work Study (FWS) programs will be decreased. The Department of Education has not released the official decreased awards yet, but it could mean less FWS jobs in 2013-2014 and less SEOG funding to award students.
3. TEACH Grants first disbursed after March 1, 2013 will be reduced by 6.0 percent. A student who was eligible to receive the full TEACH Grant Scheduled Award amount of $4,000 would have the award reduced by $240.00 ($4,000 x 6%), resulting in an award amount of $3,760.00. Schools were originally notified that the reduction would be 12.6 percent. (updated June 6, 2013)
4. Any Iraq-Afghanistan Service Grant award where the first disbursement is made after March 1, 2013 (including both 2012-2013 and 2013-2014 awards) must be reduced by 10.0 percent from the award amount for which the student would otherwise have been eligible to receive. Hofstra does not currently have any student enrolled for the 2012-2013 award year that is eligible for this grant.   The sequester requires reductions of 10 percent from the award amount for which the student would otherwise have been eligible, not from the Scheduled Award amount of $5,550. For a student whose award would have been at the 2012-2013 Scheduled Award amount of $5,550, the institution must reduce the award by $555.00 ($5,550 x 10%), resulting in an award of $4,995.00.  For the 2013-2014 award year, for a student whose award would have been at the 2013-2014 Scheduled Award amount of $564.5, the award must be reduced by $2,133.81 ($5,645 x 10%), resulting in an award of $5,080.50.  Schools were originally notified that the reduction would be 37.8 percent.  (updated April 29, 2013)

What can you do about it?
Congress does have the power, at any time, to stop sequestration. So contact your congressperson to advocate for educational funding and to end sequestration. To find your congressperson in the House of Representatives visit here.

• Financial aid programs
• How and when to apply
• Criteria for eligibility
• Helpful resources

Watch the recorded webinar

On Friday, June 29, 2012, Congress passed legislation to extend the 3.4%interest rate on subsidized Stafford student loans for Undergraduate Students for one year. The bill temporarily delays the rate from doubling to 6.8% as of July 1. Experts estimate that this change will reduce costs for these borrowers by as much as $1,000 over the life of repayment or $6 to $9 per monthly payment.

In order to pay for part of the $6 billion cost of temporarily extending the 3.4% rate, Congress agreed to permanently limit eligibility for subsidized loans to 150% of the length of the student’s academic program. This means students in a four-year program will be eligible for subsidized student loans for the equivalent of six years. The student who reaches this limitation could continue to receive unsubsidized Stafford loans if he or she is otherwise eligible.

The legislation mandates that the Department of Education issue regulations on how to determine the aggregate period of eligibility for less than full-time students, students enrolled in preparatory coursework necessary for enrollment in a program leading towards a degree, and students enrolled in a teacher certification program who are not also regular students at the institution.

There has been a change in the law that affects Federal Pell Grant eligibility for the 2012-2013 financial aid year and beyond. This change limits the total number of years a student may receive a Pell Grant to the equivalent of six years* of full-time enrollment or 12 semesters.

*For information on how the “equivalent of six years” is calculated, click on the following link:www.studentaid.ed.gov/pell-limit

Hofstra University has made changes to its Satisfactory Academic Progress (SAP) policy for students who are receiving federal financial aid to reflect the University's academic standing policies that can be found online in the Hofstra University Undergraduate Bulletin and/or Graduate Studies Bulletin.

Federal student aid includes the following: Federal Pell Grant, Federal Supplemental Education Opportunity Grant (SEOG), Federal Teacher Education Assistance for College and Higher Education Grant (TEACH), Federal Perkins Loan, Federal Direct Stafford Loan for Students, Federal Direct PLUS Loan for Parents (PLUS), and Federal Direct Graduate PLUS Loan for Graduate Students (Grad PLUS).

er federal regulations, the new SAP requirements will be implemented effective with the annual review in June 2012.

For more information regarding the new SAP requirements, click here.

For loans first disbursed after July 1, 2013:

• the interest rate for Subsidized Stafford loans for undergraduate students will increase from 3.4% to 6.8%.
• for both Unsubsidized and Subsidized Stafford loans the origination fee will be 1.051%.
• for both Parent and Graduate PLUS loan the origination fee will be 4.204%

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CHANGES TO TAP

• All annual TAP awards are reduced by $75.
• TAP awards are not available to graduate or professional students.
• Private pension and annuity amounts excluded from New York state income tax are to be included in the calculation of income used to determine TAP award eligibility.
• A new award schedule with a maximum New York income of less than $40,000 and a maximum award of the lesser of $3,025 or the actual tuition charged is established for independent students who are married with no tax dependents.
• Students in default on any state or federal student loan are not eligible for TAP or any other New York state financial aid program.

Also, the application deadline for New York state financial aid programs is now June 30, consistent with the Free Application for Federal Student Aid (FAFSA) deadline.

NEW ACADEMIC STANDARDS HAVE BEEN ESTABLISHED FOR NONREMEDIAL STUDENTS FIRST RECEIVING STATE AID IN 2007-08 AND THEREAFTER.

Program: Baccalaureate Program Calendar: Semester
Before Being Certified for This Payment	1st 6 pt	2nd 12 pt	3rd 18 pt	4th 24 pt	5th 30 pt	6th 36 pt	7th 42 pt	8th 48 pt	9th** 54 pt	10th** 60 pt
A Student Must Have Accrued at Least This Many Credits	0	6	15	30	45	60	75	90	105	120
With at Least This GPA	0	1.5	1.8	2.0	2.0	2.0	2.0	2.0	2.0	2.0

* * (The 9th and 10th payments are for approved 5 year program students only.)

The prior academic standards were:
Before Being Certified for This Payment	1st 6 pt	2nd 12 pt	3rd 18 pt	4th 24 pt	5th 30 pt	6th 36 pt	7th 42 pt	8th 48 pt	9th** 54 pt	10th** 60 pt
A Student Must Have Accrued at Least This Many Credits	0	3	9	21	33	45	60	75	90	105
With at Least This GPA	0	1.1	1.2	1.3	2.0	2.0	2.0	2.0	2.0	2.0

The Academic Standards for students in the HEOP program (NOAH) have not changed. They will be evaluated for TAP based on the prior academic standards.

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The Financial Aid Office at Hofstra University is pleased to announce that the University will be transitioning from the Federal Family Education Loan Program (FFELP) to the Federal Direct Loan (DL) Program beginning with the 2010-2011 award year. We want to make this transition as seamless as possible for our students. We recognize that many Hofstra students rely on financial aid, including federal loans, and we hope to clearly explain some of these upcoming changes. If you have any further questions, now or throughout the transition, please call the Student Financial Services Office at (516) 463-8000.

Changes have been made to the federal student aid programs subsequent to the enactment of the Reconciliation Act of 2010 (HR 4872). Here are some changes that impact Hofstra students:

• Elimination of the Federal Family Education Loan Program (FFELP). No new Stafford Subsidized, Stafford Unsubsidized, Parent PLUS, Graduate PLUS or consolidation loan may be disbursed through the FFELP after June 30, 2010. All loans for the 2010-2011 award year disbursed after July 1, 2010, will be processed through the Direct Loan Program.

For ease to our students, Hofstra has decided to also process all Summer loans for this coming summer through the Direct Loan Program.

What is the Direct Loan Program?

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's college education. Rather than a bank or other financial institution, the lender is the U.S. Department of Education.

What does this mean for you?

This transition benefits both parents and students in the following ways:

• The interest rate on the PLUS loan will be 7.9 percent, which is lower than the current 8.5 percent interest rate through the Federal Family Education Loan Program (FFELP).
• There are rebates for both the student and the parent on the disbursement of their loan funds.
  • For student Stafford Subsidized and Unsubsidized loans, the origination fee will be 1 percent (same as FFELP), but there is a 0.5 percent rebate at disbursement. The net disbursement is 99.5% of the gross loan amount. For parent PLUS and Graduate PLUS loans, the origination fee will be 4 percent (same as FFELP), but there is a 1.5 percent rebate at disbursement. The net disbursement is 97.5% of the gross loan amount.

What does a rebate mean to you?

It means more money will apply to your cost of attendance here at Hofstra.

		FFEL Program			Direct Loan Program
		Origination Interest Rate	Rebate Interest Rate	Amount applied to your cost of attendance at Hofstra	Origination Interest Rate	Rebate Interest Rate	Amount applied to your cost of attendance at Hofstra
Amount borrowed in a Stafford loan:	$1,000.00	1.00%	None	$990.00	1.00%	0.50%	$995.00
Amount borrowed in the parent PLUS or Graduate PLUS:	$5,000.00	4.00%	None	$4,800.00	4.00%	1.5%	$4,875.00

Important to note: The rebate is an up-front interest rebate given at the time of loan disbursement. The borrower must make the first 12 payments on time (while in repayment), or the rebate amount will be added to the principal balance of the loan, thereby increasing the loan amount that must be repaid.

• There are more repayment options for students. The repayment options for students with Federal Direct Loans are similar to those of FFELP loans. However, under the DL Program, there are two new options – the income contingent repayment plan (the amount you pay toward your debt is tied into your income, allowing greater repayment flexibility) and Public Service Loan Forgiveness.

What do you do now?

Borrowers of federal student loans for the 2010-2011 award year and beyond will no longer receive loan funds through a private lender, but through the federal government’s Direct Loan Program. Private/alternative loans will continue through private lenders/banks.

You must complete the following in order to receive your loans for the 2010-2011 award year:

For Stafford loans:
You will need to complete a new Master Promissory Note (MPN) with the U.S. Department of Education and complete an new entrance counseling session. After May 1, 2010, visit www.studentloans.gov. Under "Manage My Direct Loan," click on "Sign In" to complete your MPN and entrance counseling session. The entrance counseling session is interactive and online, and informs students how to manage their educational expenses and how to be responsible borrowers. Note: You will need a federal PIN to complete this process. For PIN information, visit www.pin.ed.gov. For assistance, please call 1-800-557-7394.

For Parent PLUS loans for dependent undergraduate students:
Your parent will need to complete a new Master Promissory Note (MPN) with the U.S. Department of Education. After May 1, 2010, visit www.studentloans.gov. Under "Manage My Direct Loan," click on "Sign In" to complete your PLUS MPN and PLUS application. Note: You will need a federal PIN to complete this process. For PIN information, visit www.pin.ed.gov. For assistance, please call 1-800-557-7394.

For Graduate PLUS loans:
If you want a Graduate PLUS loan, you must complete the Grad PLUS application on www.studentloans.gov or send a written request to your SFS counselor. You will then need to complete a new Master Promissory Note (MPN) with the U.S. Department of Education and complete an new entrance counseling session. Visit www.studentloans.gov. Under "Manage My Direct Loan," click on "Sign In" to complete your MPN and entrance counseling session. Note: You will need a federal PIN to complete this process. For PIN information, visit www.pin.ed.gov. For assistance, please call 1-800-557-7394

NOTE: For MAC users, you must use Mozilla Firefox to access www.studentloans.gov. The website is not compatible with Safari.

If you would like more information about Direct Lending, visit one of these sites:

• Direct Loan Servicing Online
• Direct Consolidation Loans
• Repaying Your Student Loan

• In-School Consolidation: Borrowers who have loans in the Direct Loan Program, Federal Family Education Loan Program (FFELP), or loans purchased by the Department under Ensuring Continued Access to Student Loans (ECASLA ) may consolidate those loans into a Direct Consolidation loan between July 1, 2010, and July 1, 2011. The borrower must have at least one loan in two of the three categories named, and have not yet entered repayment on at least one of those loans.

• Income-Based Repayment (IBR): Beginning July 1, 2014, new borrowers will qualify for IBR if the borrower's standard repayment exceeds 10 percent of discretionary income (reduced from the current 15 percent), and the income-based repayment amount is lowered to 10 percent of the borrower's discretionary income. (Discretionary income is the amount of the borrower's AGI that exceeds 150 percent of the poverty line for the borrower's family size.) Loan forgiveness occurs after 20 years of repayment rather than the current 25 years.

• Mandatory Pell Add-Ons: Pell Grant maximums in future years will change to reflect an appropriated base with a mandatory add-on. This means that increases to the Pell Grant will occur each year. From 2014-2015 through 2017-2018, increases to the mandatory add-on would be based on estimated changes to the consumer price index (CPI). For more information on the CPI, visit www.bls.gov/CPI.

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CONTINUING STUDENTS

Beginning in the 2008-2009 academic year, financial aid awards will be posted on your My.Hofstra.edu pages. Check your e-mail for a notice from us that will tell you when your financial aid package has been created and is ready for viewing on the Web.

College Cost Reduction and Access Act of 2007 reduced the interest rates on subsidized Stafford Loans for undergraduate students starting July 1, 2008. These reductions are available only to undergraduate students, not graduate students, and only for the subsidized Stafford loans, not unsubsidized Stafford loans. The interest rates are illustrated in the following table.

Phased-in Cuts in Interest Rates on Subsidized Stafford Loans for Undergraduate Students
Year	Interest Rate Subsidized Stafford Loans (Undergraduate Students)	Interest Rate Other Stafford Loans (Graduate or Unsubsidized)
2007-08	6.8%	6.8%
2008-09	6.0%	6.8%
2009-10	5.6%	6.8%
2010-11	4.5%	6.8%
2011-12	3.4%	6.8%
2012-13	6.8%	6.8%

Stafford Loans have loan fees of 4%, which are deducted from the disbursement. These fees consist of a 3% origination fee and a 1% default fee (previously "guarantee fee"). Starting July 1, 2006, the default fee will be mandatory. (Previously guarantee agencies could waive the fee and many did.) The origination fee will drop from 3% from 3% to 2% on July 1, 2006, and will drop by a further 0.5% each successive July 1, until it is phased out entirely on July 1, 2010.

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