At What Point Are You No Longer Eligible To Receive Direct Subsidized Loans?
You lose eligibility for direct subsidized loans after surpassing 150% of your program's duration, such as six years for a four-year program.
by Sai V
Updated Oct 26, 2023
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At What Point Are You No Longer Eligible To Receive Direct Subsidized Loans?
You are no longer eligible to receive direct subsidized loans once you exceed 150% of the published length of your educational program. This maximum eligibility period is determined based on the program's duration, allowing for some flexibility for students taking longer to complete their studies.
For instance, if your program is four years long, you would no longer qualify after six years (150% of four years). Once you reach this point, you are no longer eligible for direct subsidized loans, marking the end of your loan eligibility under this program.
What is a Subsidized Loan?
A subsidized loan is a federal student loan in the U.S. where the Department of Education covers the interest while the borrower is in school and during deferment, such as military service. These loans are for undergraduates with demonstrated financial need. Eligibility is determined through the FAFSA application. Repayment starts six months after graduation, and borrowers can contact their loan servicer for assistance if facing financial challenges.
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