Trends and Issues

Question of the week

Q.: After reading the Question of the Week in Shoptalk Online edition 445, I understand that the limit for paying minor, prior year charges with current year Title IV funds will be no more than $200 under the new regulations. Does "prior year" mean semester, award year, or academic year; or can it be any of these?

A.: The new regulations [34 CFR 668.164(d)(2)] specify "prior award year charges" as the applicable period of time. Incidentally, "current charges" are defined on page 4-27 of the 2007-08 Federal Student Aid Handbook as "[c]harges assessed by the school for the current award year or the loan period for which the school certified or originated an FFEL or Direct Loan."

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