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Direct Subsidized Loan Limits

150% Direct Subsidized Loan Limit

As of July 1, 2013 a new legislative law went into effect for any new Direct Stafford Subsidized Loan Borrowers. 

What is the new law?

Congress passed a bill “Moving Ahead for Progress in the 21st Century Act” which has established time limitations on Direct Stafford Subsidized Loans.  This new law will be effective for first time borrowers or borrowers who have paid off their loans and are borrowing again as of July 1, 2013.

This law allows you to receive Direct Stafford Subsidized Loans only within 150% of the length of your program of study.  Once you have reached the end of this limit you are no longer able to receive Direct Stafford Subsidized Loans.  For example; if you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Stafford Subsidized Loans is three years (2 x 150% = 3 years).

Listed below are situations that will require you to start accruing interest on your Direct Stafford Subsidized Loan, such as:

  1. I am no longer eligible for Direct Stafford Subsidized Loans and I stay enrolled in my current program.
  2. I am no longer eligible for Direct Stafford Subsidized Loans, did not graduate from my prior program, and am enrolled in an undergraduate program that is the same length or shorter than my prior program.
  3. I transferred into a shorter program and lost eligibility for Direct Stafford Subsidized Loans because I have received Direct Stafford Subsidized Loans for a period that equals or exceed my new, lower maximum eligibility period, which is based on the length of the new program.      

In essence, students will no longer be able to receive Direct Stafford Subsidized Loans for more than 150% of the length of your program.   Once you reach the length of your program, you may continue to receive Direct Stafford Unsubsidized Loans; however interest will start accruing on the outstanding Direct Stafford Subsidized Loans.

What should I do?

  • Keep on track with your academic program of study.  If you are unsure that you are taking the appropriate classes you can talk with your Academic Counselor or Advisor in the Counseling Career Center.  They can be contacted at 616-234-4130 or counseling@grcc.edu
  • Ensure that your program of study is accurate with your college.
  • Contact the Financial Aid Office with any questions or concerns in regards to this new law.
  • For further information view the FACT Sheet from the Federal Government