Announcements

Financial Aid will post time-sensitive information on this page. Announcements are listed with the most recent posting on top. Please check back frequently.

Recent Changes to the Student Aid Programs

As a result of recent legislative changes, you should be aware of a number of new requirements for the federal student aid programs. Most of these changes are effective with the 2012-13 school year (July 1, 2012 through June 30, 2013).

Here's an overview of the changes that could impact your financial aid for the upcoming academic year and in the future. Please click here for more information.

Federal Pell Grant Program — Duration of Eligibility

Once you have received a Pell Grant for 12 semesters, or the equivalent, you will no longer be eligible for additional Pell Grants.

•  You are eligible to receive a Pell Grant for up to 12 semesters or the equivalent. If you have exceeded the 12-semester maximum, you will lose eligibility for additional Pell Grants beginning in 2012-13 school year. Equivalency is calculated by adding together the percentage of your Pell eligibility that you received each year to determine whether the total amount exceeds 600%.

•  For example, if your maximum Pell Grant award amount for the 2010-2011 school year was $5,550, but you only receive $2,775 because you were only enrolled for one semester, you would have used 50% of your maximum award for that year. If in the following school year, you were enrolled only three-quarter time, you would have used 75% of your maximum award for that year. Together, you would have received 125% out of the total 600% lifetime limit.
• For more information, click here.
  

Expected Family Contribution

The lower a student's Expected Family Contribution (EFC), the higher the student's federal student aid eligibility. A change has been made to the income amount that is used to determine if a student qualifies for an automatic EFC of zero.

• When you complete the Free Application for Federal Student Aid (FAFSA), you receive an Expected Family Contribution, which is a number used to determine your federal student aid eligibility. For the 2012-13 school year, you will automatically qualify for an Expected Family Contribution of zero if your family income does not exceed $23,000. This is a reduction from the previous maximum income of $32,000.

 Direct Student Loan Changes

Direct Subsidized loans will not be eligible for an interest subsidy during the six-month grace period.

•  Subsidized loans are loans for which the borrower is not responsible for the interest while the student is enrolled in college on at least a half-time basis, when the loan is in the six-month grace period after the student is no longer enrolled at least half time, or if the loan is in a deferment status. This provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. If you receive a subsidized loan during this timeframe, you will be responsible for the interest that accrues while your loan is in the grace period. You do not have to make payments during the grace period (unless you choose to) but the interest will be added (capitalized) to the principal amount of your loan when the grace period ends. This provision does not eliminate the interest subsidy while the borrower is in school or during eligible periods of deferment.

All subsidized loans made to undergraduate students will have a fixed interest rate of 6.8%.

• Subsidized loans for which the first disbursement is on or after July 1, 2012, will have a 6.8% fixed interest rate. Note: In the President's FY2013 budget request, the Administration has proposed maintaining the interest rate on subsidized loans at the current rate of 3.4% for the 2012-2013 school year.

 Graduate and professional students are no longer eligible to receive subsidized loans.

•  Effective for loans made for payment periods that begin on or after July 1, 2012, graduate and professional students are no longer eligible to receive subsidized loans. However, if you are a graduate or professional student, you may still qualify for up to $20,500 in unsubsidized loans each year.

 The U.S. Department of Education can no longer offer borrowers repayment incentives.

•  Effective for loans first disbursed on or after July 1, 2012, the Department of Education is prohibited from offering any repayment incentives to Direct Loan borrowers, except interest rate reductions to borrowers who agree to have payments automatically electronically debited from their bank account).

Changes in State-Based Aid for NC Residents Planned in 2012-2013

Salem College students who are North Carolina residents will experience significant changes in state-based financial aid as a result of cuts made by the N.C. General Assembly.

The N.C. General Assembly made $35 million in cuts to state funding for independent colleges and universities across the state.  These cuts were part of $925 million in funding cuts for education, including for public universities.

Beginning in the 2012-13 academic year, the following scholarships and grants will no longer be available:

• N.C. Legislative Tuition Grant (NCLTG)
• N.C. Contractual Scholarship Funds (NC SCF)
• N.C. Lottery Scholarship

In their place will be a single need-based scholarship, the NC Need-Based Scholarship. Therefore, please be aware that students who have traditionally received the NCLTG may no longer be eligible for a state grant under the new program.

Tax Benefits for Education Costs

"Attention college students and their parents: There are two tax credits offered for postsecondary education," Fox Business reports. "Money used toward tuition, course materials, fees, books, and equipment can be considered for either the American Opportunity Credit or the Lifetime Learning Credit. Money spent on room and board is not eligible for either tax credit. Almost every college, university, vocational school or other postsecondary institution eligible to participate in a student aid program administered by the Department of Education qualifies. Even some foreign schools qualify. In fact, the school should be able to tell you whether attendance at their institution makes you eligible to take either credit."

Special Direct Consolidation Loan Information

The Special Direct Consolidation Loan opportunity the Department will offer through Direct Loan Program will be available to eligible borrowers from Jan. 17 to June 30. The Department has nearly completed implementation and will make the online application available to eligible borrowers on Jan. 17. This announcement provides additional and updated information in anticipation of the mid-January  2012 start. Click here for additional information.

Satisfactory Academic Progress (SAP)

The policy for SAP has changed. The new policy is effective beginning Fall 2011. This policy may be amended whenever federal and state laws and regulations are changed. This policy will be included in the college catalog and other appropriate college publications. The policy is provided to each financial aid recipient here. Please note:  if you were not making SAP prior to Fall 2011, please contact the Financial Aid Office.

Incorrect Text Regarding IRS Deadline in E-Mail from FAFSA

An email was recently sent to students from the US Department of Education directed at 2012-2013 applicants and/or their parents who did not, for various reasons, use the IRS Data Retrieval Tool on FAFSA on the Web on their initial application. The e-mail notifications encourage individuals to return to FAFSA on the Web, use the IRS Data Retrieval Tool to transfer tax information, and submit a correction record. After this distribution began, the government was alerted that the e-mail text erroneously stated that the "federal tax deadline has passed." The deadline for filing 2011 federal tax returns continues to be April 17, 2012. The government is currently planning to distribute a follow-up e-mail notification to the recipients of the original message explaining the text error. The subject line of the follow-up e-mail will read “Correction to ‘Updates Needed to Your FAFSA’ Message.” 

NC Residents - NCLTG - Spring 2012

As you were informed in the fall, the North Carolina General Assembly has reduced funding for the NC Legislative Tuition Grant (NCLTG) for the 2011-12 academic year. The fall amount remained $925 for students enrolled full-time on October 1, 2011.

The spring 2012 NCLTG was not reduced as much as originally anticipated. The spring amount is $695 for students enrolled full-time as of the spring census date.

This change will be reflected on your Spring 2012 bill. After you receive your bill, if this creates a balance you did not anticipate, please contact our office to see if you have additional student loan eligibility.