Posted Date:November 9, 2012
|Author:||David A. Bergeron, Acting Assistant Secretary for Postsecondary Education|
Subject: Packaging and Repackaging of Title IV Student Aid
In response to questions received by the Department from a number of institutions, attached to this Electronic Announcement is a paper that summarizes the conditions under which Title IV student aid, including a parent PLUS Loan, should be awarded for a prior enrollment period within the academic year. It also describes the conditions under which repackaging of previously awarded Title IV aid is necessary. The attachment restates long-standing principles applicable to Title IV programs and does not represent a change in policy.
The information provided generally applies equally to all of the Title IV student aid programs, including PLUS loans.
As a note to institutions, because repackaging aid may result in increased loan debt for students or their families, especially through PLUS loans that can be awarded up to the cost of attendance, we encourage schools to stress that students and their families consider debt load and their ability to repay when advising students and their families.