Student Finance

Direct Subsidized Loan Limit

As of July 1, 2013, a new federal law established time limitations on Direct Stafford Subsidized Loans. The maximum eligibility period to receive Direct Subsidized Loans affects first-time loan-buyers or borrowers who have paid off their loans and are borrowing again as of July 1, 2013.

How the Limit Works

This law allows you to receive Direct Subsidized Loans (loans where the government pays the interest while the student is in school) only within 150% of the published length of your academic program. Once you reach the end of this limit you are no longer eligible to receive Direct Stafford Subsidized Loans. At this point, you may continue to receive Direct Stafford Unsubsidized Loans (which accrue interest while you are in school); interest will also start accruing on any outstanding Direct Stafford Subsidized Loans at the end of this limit.

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% of four years). If you are enrolled in one of the college’s two-year associate degree programs, the maximum period for which you can receive Direct Subsidized Loans is three years (150% of two years).

The length of the academic program is published in the PUC General Catalog. Your maximum eligibility period for Direct Subsidized Loans can change if you change academic programs. You can learn more about the time limitations on Direct Subsidized Loan Eligibility on the Federal Student Aid website’s information sheet.

What You Should Do

Keep on track with your academic program of study by continuing to make progress toward completing your academic program each year. Speak with your academic advisor or the Records Office if you have any questions about your academic program or progress.

Make sure your program of study is accurate. If your academic program is not accurate, fill out the appropriate form with the Records Office.

If you have further questions or concerns, speak with your Financial Aid Counselor.