SULA: Knowing Your MEPs from Your REPs Presenters: Victoria Lenderman, Loan Manager, Forsyth Tech Fall Conference November 4 - 7, 2018

Fall Conference November 4 - 7, 2018 SULA Basics Technically known as ‘150% Limitation on Direct Subsidized Loan Eligibility’ Applies only to first-time borrowers as of July 1, 2013 Only effects Subsidized Direct Loans Based on the published length (in time) of the borrower’s current program of study Includes only periods when the borrower receives a Direct Subsidized Loan Can mean either a loss of eligibility or a loss of the interest subsidy, or both Fall Conference November 4 - 7, 2018

150% Limit Formula Maximum Eligibility Period (MEP) Total of Subsidized Usage Periods (SUP) = Remaining Eligiblity Period (REP) Fall Conference November 4 - 7, 2018

Maximum Eligibility Period 150% of the published length of a borrower’s current program of study Varies by program Measured in years or any portion of a year Program length must be reported to COD Department of Education calculates! Fall Conference November 4 - 7, 2018

Conversion of Months or Weeks to Years # of Days in Program # of Days in TIV Academic Year Week = 7 days Month = 30 days Fall Conference November 4 - 7, 2018

Fall Conference November 4-7, 2018 Example IT Support & Services certificate program is 39 weeks for 2018-19 (Fall, Spring & Summer terms) School’s TIV AY is 30 weeks (39 x 7) = 273 (30 x 7) = 210 273 / 210 = 1.3 years MEP = 1.3 x 1.5 = 1.9 years Fall Conference November 4-7, 2018

Example of Incorrect Calculation School reported Associate Degree as 24 months TIV AY = 32 weeks (24 x 30) = 720 (32 x 7) = 224 720 / 224 = 3.2143 MEP = 3.2 x 1.5 = 4.8 years BUT, the 150% Direct Subsidized Loan Limit: EA #17 says ‘If the school has not published a program length and the program is an associate or bachelor's degree program, the program length to be reported should be 2 years or 4 years, respectively, ...’ Fall Conference November 4-7, 2018

Fall Conference November 4-7, 2018 Exceptions Bachelor’s degree completion program – MEP = 6 years Selective admission Associate degree program – MEP = 4 years Preparatory coursework Simultaneous or dual enrollment Fall Conference November 4-7, 2018

Subsidized Usage Period Calculated loan by loan Measured in academic years or portions thereof, rounded up or down to nearest .10 Only includes periods when Direct Subsidized Loan received Department of Education calculates! Fall Conference November 4-7, 2018

Fall Conference November 4-7, 2018 SUP Formula Step 1: # of Days in Loan Period # of Days in SAY or BBAY Step 2: Prorate for enrollment status: Full time = 100% Three Quarter time = 75% Half time = 50% Step 3: Round up or down to the nearest .10 Fall Conference November 4-7, 2018

Fall Conference November 4-7, 2018 Exceptions Annual Loan limit – only time when dollar amount is considered is when student receives a Direct Subsidized Loan in the amount of the annual loan limit and loan period is less than an academic year. SUP is still prorated for enrollment status, even it student receives the full annual limit during a single term. Fall Conference November 4-7, 2018

Fall Conference November 4-7, 2018 Examples Student has fall/spring loan and is enrolled three- quarter time fall, full time spring. SAY is fall/spring. 260 / 260 = 1 1 x .75 = .75 1 x 1 = 1 1.75 / 2 = .875 or .9 Fall Conference November 4-7, 2018

Remaining Eligibility Period MEP – SUP = REP Student losses eligibility for further Direct Subsidized Loans when the REP is zero or less Includes all Direct Subsidized Loans received for all enrollment in all programs except teacher certification programs Can receive Direct Unsubsidized Loan Department of Education calculates! Fall Conference November 4-7, 2018

Fall Conference November 4-7, 2018 COD Examples Fall Conference November 4-7, 2018

COD Subsidized Usage Calculator Fall Conference November 4-7, 2018

Fall Conference November 4-7, 2018

Fall Conference November 4-7, 2018

Fall Conference November 4-7, 2018

Loss of Interest Subsidy REP is zero in current program of study, but student continues at least half time in same program Reaches MEP in current program, doesn’t complete that program and enrolls at least half time in another program of equal or shorter length REP > 0 in current program, enrolls at least half time in shorter program and SUP is greater than or equal to new program MEP Fall Conference November 4-7, 2018

Loss of Interest Subsidy Cannot be regained on a loan once lost Effective from the date of the enrollment that caused the loss Responsible for interest during periods when they otherwise would have been eligible for subsidy Fall Conference November 4-7, 2018

Loss of Interest Subsidy Fall Conference November 4-7, 2018

NCASFAA would like to thank our Professional Affiliates! Fall Conference November 4 - 7, 2018