Student loans: when are you no longer eligible to receive direct subsidized loans?

IIn case you had no idea, there is a maximum time limit to get Subsidized direct loans.You are not expected to achieve this for more than 150% of the published duration of your program. This is called the “maximum eligibility period”. A published duration of any program can be found in the catalog of any degree program.

As an example, let’s say you are enrolled in a 4-year bachelor’s program. This means that the maximum period during which you can obtain Subsidized direct loans is 150% of these four years. This means that four years equals six years of direct subsidized loans. If your period is 2 years, you get 3 years of these loans. The maximum eligibility period can certainly change if you change programs.

Periods that count towards the maximum eligibility period

The time periods that tend to count towards your maximum eligibility period are those that count as registration. They are also referred to as the loan periods for which you received the direct subsidized loans. If you are a full-time student and you have obtained this loan which covers the fall and spring semesters, this counts as one year towards your maximum eligibility period.

The period counts towards your maximum use of the eligibility period and will be reduced if you obtain a direct subsidized loan for less than a full academic year. Your loan amounts do not change much because each person with Direct Subsidized Loans has an annual loan limit.

The maximum eligibility period will be reduced if you were enrolled full-time and move to part-time. Individuals receiving direct subsidized loans who are no longer eligible and remain enrolled in the program will be charged interest.

In addition, those who do not complete their program will also have to pay interest. A PDF document known as Federal Student Aid will offer more details on the interest accruing to direct subsidized loans. This is a document prepared by the Ministry of Education.

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