1. What FAAs Need to Know About 150% Direct Subsidized Loan Limits AMY CABLE BATON ROUGE COMMUNITY COLLEGE

2. First-Time Borrowers  Only students who are first-time borrowers on or after July 1, 2013 are effected by the 150 percent limit provisions

3. Consequence: Eligibility Loss  Do not qualify for Direct Subsidized loans for future enrollment unless they enroll in a longer program of study.  Lose interest subsidy for prior loans when they: Received Direct Subsidized loans for 150 percent of the length of a program of study; AND Have not completed their programs; AND Continue to be enrolled on at least a half-time basis in the same program, a different program of the same length, or a program of shorter duration

4. Consequence: Interest Subsidy Loss Lost eligibility due to 150% limit Did not complete program Enrolls in program of equal or shorter length Subsidy Loss Based on enrollment, not borrowing, or requesting aid.

5. Determining when Eligibility is Lost Maximum Eligibility Used All Subsidized Usage Periods Remaining Eligibility Periods

6. Maximum Eligibility Period (MEP)  The MEP is 150 percent of the published length of the borrower’s current academic program, measured in academic years. Schools must report the academic program length in years, months or weeks. COD displays MEP based on information provided by the schools.  Example: The school’s defined academic year is 32 weeks, or 224 days (32 weeks x 7 days per week= 224 days). Every month is considered to have 30 days Program lengthConversion to Days Program Length (based on 224 days per academic year) MEP (150 percent) 16 weeks112 days112/224=0.5 years 0.75 years 6 months180 days180/224=0.8 years 1.2 years

7. Subsidized Usage Period (SUP)  SUP is the period of time during which the borrower receives a Direct Subsidized loan. The usage period generally does not take into account the amount a student borrows but only the period of time and enrollment states for which a Direct Subsidized loan is received. Number of days in borrower’s loan period Number of days in borrower’s academic year Result is rounded up or down to the nearest tenth of a year

8. Subsidized Usage Period (SUP)  Example: Term Based- Jacobs College has semester-based academic year made up of the fall and spring terms. The fall term begins on August 29, and the spring term ends on May 20. There are 269 days in both the loan period and academic year.  If a student receives a subsidized loan as a full-time student for both terms, the loan period begins on August 29 and ends on May 20. The SUP would be: 269 days in loan period 269 days in academic year 1.0 SUP

9. Remaining Eligibility Period (REP)  Example: Term Based- Jacobs College has semester-based academic year made up of the fall and spring terms. The fall term begins on August 29, and the spring term ends on May 20. There are 269 days in both the loan period and academic year.  If a student receives a subsidized loan as a full-time student for both terms, the loan period begins on August 29 and ends on May 20. The SUP would be: Maximum Eligibility Period - Subsidized Loan Eligibility Used =Remaining Eligibility Period