150% Direct Subsidized Loan Limit Information

What is the 150% Rule for Direct Subsidized Loans?

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time you can receive Direct Subsidized Loans only. The U.S. Department of Education pays the interest for a subsidized loan while you are in school attending class at least half time or part-time. You cannot exceed 150% of the published length of the program you are enrolled in. All attempted credit hours are considered toward the maximum time calculation, regardless of whether or not financial aid is received. Once you have reached the maximum timeframe, you are considered ineligible for financial aid.

Who is affected?

If you are a first-time borrower OR borrowed in the past and paid back your previous loans, and you are now borrowing again, this rule will affect you.

Which loans are affected?

Only the Direct Subsidized Loans are affected.

When is the limit reached?

The limit will be reached when you receive Direct Subsidized loans for 150% of the standard length of the program in which you are enrolled.

Student Status Average Program Hours Percentage Maximum Timeframe
Associate Degrees (AA or AS) 60 150% 90
Bachelor's Degree 120 150% 180

For example, an Associate in Arts program (which is normally completed in 2 years attending full time) borrowers can only receive Subsidized loans for a maximum of 3 years. (150% of 2 years = 3 years).

What if I reach my limit and have not completed my degree?

Once you have reached your Direct Subsidized loans limit, you may receive a Direct Unsubsidized loan and you will accrue interest. This legislation was enacted to encourage students to obtain their degree within a reasonable timeframe.

I am transferring to FSW from another college; will my transfer credits count toward the 150% loan limit?

All hours attempted from another college will count towards the degree at FSW and will be included in the maximum time frame for your new degree.