OCAP Legislative Update


ED Issues Updated Guidance on Sequestration

On April 5, 2013, ED issued an electronic announcement with guidance related to the impact of sequestration on Title IV student aid programs. The announcement details the COD implementation of the loan fee increase. Also, ED instructs institutions that disbursed Direct Loans using the new loan fee percentages of 1.051 percent and 4.204 percent to adjust those disbursements to use the 1.0 percent and 4.0 percent fees, consistent with the guidance provided in the announcement.

In addition to addressing Direct Loan fees, the announcement provides information regarding the allocation of funds for the 2013-2014 Federal Work-Study and Federal Supplemental Educational Opportunity Grant programs.

Mary Heid
Director for Default Prevention, Compliance & Training Services
OCAP Communications
P.O. Box 3000
Oklahoma City, OK 73101-3000