Regulatory Changes

Previously passed classes may only be repeated one time and continue to be included in determining enrollment status (full-time, half-time, etc). Students repeating previously passed classes may experience reduced eligibility for financial aid when those classes are excluded from calculating enrollment status. Repeated courses do affect satisfactory academic progress standards. A repeated course (along with the original attempt) is counted towards the maximum time frame and completion rate.

150% Subsidized Loan Limit for First-time Borrowers on or after July 1, 2013:

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is based on the published length of your current program. You can usually find the published length of any program of study in your school’s catalog.

For example, if you are enrolled in a four-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is six years (150 percent of 4 years = 6 years). If you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years).

Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period.

Certain types of enrollment may cause you to become responsible for the interest that accrues on your Direct Subsidized Loans when the U.S. Department of Education usually would have paid it. These enrollment patterns are described below.

Adjustments in Origination Fees for all Federal Loan Borrowers

• Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.
• For a Direct Subsidized and Direct Unsubsidized Loan:
  • Loan Fee is 1.059% for loans first disbursed on or after 10/1/19 and before 10/1/20.
  • Loan Fee is 1.062% for loans first disbursed on or after 10/1/18 and before 10/1/19.
• For Direct PLUS Loans for both parent and graduate student borrowers:
  • Loan Fee is 4.236% for loans first disbursed on or after 10/1/19 and before 10/1/20.
  • Loan Fee is 4.248% for loans first disbursed on or after 10/1/18 and before 10/1/19.

More information regarding Federal Direct Loans can be found online.