150% Subsidized Loan Limit for First-time Borrowers on or after July 1, 2013:
If you are a first-time borrower on or after July 1, 2013, there is a limit on the
maximum period of time (measured in academic years) that you can receive Direct Subsidized
Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS
Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for
more than 150 percent of the published length of your program. This is called your
“maximum eligibility period.” Your maximum eligibility period is based on the published
length of your current program. You can usually find the published length of any program
of study in your school’s catalog.
For example, if you are enrolled in a four-year bachelor’s degree program, the maximum
period for which you can receive Direct Subsidized Loans is six years (150 percent
of 4 years = 6 years). If you are enrolled in a two-year associate degree program,
the maximum period for which you can receive Direct Subsidized Loans is three years
(150 percent of 2 years = 3 years).
Because your maximum eligibility period is based on the length of your current program
of study, your maximum eligibility period can change if you change to a program that
has a different length. Also, if you receive Direct Subsidized Loans for one program
and then change to another program, the Direct Subsidized Loans you received for the
earlier program will generally count toward your new maximum eligibility period.
Certain types of enrollment may cause you to become responsible for the interest that
accrues on your Direct Subsidized Loans when the U.S. Department of Education usually
would have paid it. These enrollment patterns are described below.
Adjustments in Origination Fees for all Federal Loan Borrowers
- Most federal student loans have loan fees that are a percentage of the total loan
amount. The loan fee is deducted proportionately from each loan disbursement you receive
while enrolled in school. This means the money you receive will be less than the amount
you actually borrow. You’re responsible for repaying the entire amount you borrowed
and not just the amount you received.
- For a Direct Subsidized and Direct Unsubsidized Loan:
- Loan Fee is 1.059% for loans first disbursed on or after 10/1/19 and before 10/1/20.
- Loan Fee is 1.062% for loans first disbursed on or after 10/1/18 and before 10/1/19.
- For Direct PLUS Loans for both parent and graduate student borrowers:
- Loan Fee is 4.236% for loans first disbursed on or after 10/1/19 and before 10/1/20.
- Loan Fee is 4.248% for loans first disbursed on or after 10/1/18 and before 10/1/19.
More information regarding Federal Direct Loans can be found online.