The Budget Control Act (BCA) of 2011, signed on August 2, 2011, brings two changes to the Federal Direct Loan Program:
Graduate students are no longer eligible to receive the Federal Direct Subsidized Loan effective on or after July 1, 2012. Graduate students in a Masters Program may be eligible for up to $20,500 in Federal Direct Unsubsidized Loans and graduate students in a Certificate Program may be be eligible for up to $12,500.
Effective July 1, 2012, Direct Loan borrower repayment incentives have been terminated on all Federal Direct Loans, including Parent PLUS and Graduate PLUS Loans. There will no longer be a rebate given on the loan fees