1. RUNNING OUT THE CLOCK
SULA

2. PUBLIC LAW
Public Law was enacted on July 6, It limits a first time borrower’s eligibility for subsidized loans and limits the interest subsidy for these borrowers on subsidized loans based on the student’s program of study
Affectionately called “SULA”

3. “First-Time Borrower”
SULA ONLY applies to first-time borrowers as of July 1, 2013
A borrower with no outstanding balance on a FFEL/Direct Loan when a loan is originated on or after July 1, 2013
A student who has NEVER previously had a loan. This could be a third-year student who never had a previous loan.
A student who had a FFELP or D/L Loans in the past, paid them all off, and received a qualifying Direct Loan on or after July 1, 2013.

4. SULA
COD

5. SULA
150% limit is met and further eligibility is lost when Remaining Eligibility Period is zero (or less)

6. SULA – Maximum Eligibility Period
Maximum eligibility period is 150% (time and a half) of the Published Program Length of the borrower’s current or upcoming academic program
Varies by program
Multiply PPL by 1.5
2 Year Associates Degree X 1.5 = 3 years MEP
4 Year Bachelor’s X 1.5 = 6 Year limit
1 Year Certificate X 1.5 = 1.5 Year limit
Measured in years or portions of years. If PPL is reported in months or weeks COD will convert to years
ED will calculate using school reported information

7. SULA – SUBSIDIZED USAGE PERIOD
The period of time for which a borrower receives a Direct Subsidized Loan
Calculated by COD on a loan-by-loan basis and is calculated using school-reported data
Measured in years or portions of years and is rounded up or down to the nearest tenth of a year
Includes ONLY periods when a borrower receives and retains a Direct Sub. Loan
With one exception, SULA is NOT related to loan amount – Aggregate and annual loan limits still do apply

8. SULA – Subsidized Usage Period
#days in loan period
#days in academic year
SUP
Pro-rated by enrollment status
Full time enrollment = 1
¾ time enrollment = 0.75
½ time enrollment = 0.5

9. SULA - Exception $$$ amounts do not matter unless
The Subsidized Loan amount awarded is equal to the annual subsidized loan limit for the grade level a
AND
The loan period is less than the full academic year of the loan