Federal Direct Subsidized Loan Eligibility Time Limitation (150% Rule)

First-time borrowers [those who have no principal or interest balance on any Federal Direct Loan or Federal Family Education Loan (FFEL) on the date they receive a Federal Direct Loan on or after July 1, 2013] may not receive Direct Subsidized Loans for a period that exceeds 150% of the published length of the academic program in which they are currently enrolled. This length of time is also known as the "maximum eligibility period".

For example, a first-time borrower in a 4-year program would have six years of Direct Subsidized Loan eligibility.

Previous borrowers who still have a principal or interest balance on any Federal Direct Loan or Federal Family Education Loan (FFEL) as of July 1, 2013, are not subject to the 150% rule.

For more information please go to https://studentloans.gov/myDirectLoan/directSubsidizedLoanTimeLimitation.action