1. SULA: Knowing Your MEPs from Your REPs
Presenters:
Victoria Lenderman, Loan Manager, Forsyth Tech
Fall Conference November , 2018

2. 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 , 2018

3. 150% Limit Formula Maximum Eligibility Period (MEP)
Total of Subsidized Usage Periods (SUP)
= Remaining Eligiblity Period (REP)
Fall Conference November , 2018

4. 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 , 2018

5. 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 , 2018

6. Fall Conference November 4-7, 2018
Example
IT Support & Services certificate program is 39 weeks for (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

7. 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 =
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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

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

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19. 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

20. 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

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

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