1. 150% Subsidized Loan Eligibility 2013 Tri-State Fall Conference Angie Hovatter Andrew Harvey

2. Who’s Counting

3. Public Law 112-141 O Moving Ahead for Progress in the 21 st Century (MAP 21) – enacted July 6, 2012. O Amended the HEA to establish a limit on Direct Subsidized Loan eligibility O Waived requirement for negotiated rulemaking and master calendar.

4. What did it say? O A new borrower on or after July 1 st, 2013 cannot receive subsidized loans for more than 150% of the published length of the borrower’s educational program.

5. O Affects only 1 st time borrowers O NO effect on Unsubsidized Loans or PLUS loans O Determining When 150% Limit is Met O Maximum Eligibility Period (less) Total Subsidized Usage Periods (equals) Remaining Eligibility Period

6. Maximum Eligibility Period Examples Program LengthMax. Eligibility Period 5-Year Bachelor’s Degree X 1.57.50 Years 4-Year Bachelor’s Degree X 1.56.00 Years 2-Year Associate’s Degree X 1.53.00 Years 2-Year Certificate Program X 1.53.00 Years

7. Direct Subsidized Loan Limitation O Student’s maximum time to receive Direct Subsidized Loans is established based on the length of the program in which the student is currently enrolled.

8. Examples

9. O Student receives 3 full years of Direct Subsidized Loans while enrolled in two-year program. O Max = 3 years (less) Usage (3 years) = ZERO remaining eligiblity.

10. O Student receives 3 full years of Direct Subsidized loans while enrolled in a two-year program. O Student transfers to a four- year program. O Maximum Eligibility Period = 6 years. O Total Usage = 3 Years O Remaining Eligibilty = 3 Years

11. O Student receives 2 full years of Direct Subsidized Loans while enrolled in a four-year program. O Student transfers to a two- year certificate program. O Maximum Eligibility = 3 years O Total Usage = 2 years O Remaining Eligibility = 1 year

12. O Student receives 5 full years of Direct Subsidized Loans while enrolled in a four-year program. O Student enrolls in another four-year program. O Maximum Eligibility Period = 6 year O Total Usage = 5 years O Remaining Eligibility = 1 year

13. O Student receives 6 full years of Direct Subsidized Loans while enrolled in a four-year program. O Student continues enrollment in the same four-year program. O Maximum Eligibility = 6 years O Total Usage = 6 years O Remaining Eligibility =ZERO

14. O Student received on Direct Subsidized Loan while enrolled in an 18-week certificate program. O Student enrolls in a two-year program. O Maximum Eligibility = 3 years O Total Usage = 0.50 years O Remaining Eligbility = 2.5 years

15. Loss of Interest Subsidy O Borrower responsible for interest triggered from date of continued or subsequent enrollment. O Responsible for interest whether or not student continues borrowing. O Loan remains Direct Subsidized Loan (just loses subsidy) O Lost interest subsidy on a loan cannot be regained.

16. O Borrower enrolls in a four-year program (max 6 years) O Received 4 years of Direct Subsidized Loans. O Has 2 years remaining in eligibility. O Borrower transfers to a two-year program (max 3 years) O Borrower has NO REMAINIG ELIGIBILITY.

17. Whose keeping track? O ED/FSA will calculate, and inform students O CPS – Codes and Comments on SAR/ISIR O NSLDS – New Borrower O NSLDS – Loss of Subsidy Indicator O COD – Reports to School O COD – Editing & Enforcement O Direct Loan Servicers – Loss of Subsidy Benefits

18. What you we have to do? O Report and Update enrollment and loan period O &

19. 2014-2015 and beyond O Additional Information to Report O Student’s Enrollment Leve (FT, TQT, HT) O Classification of Instructional Program Code (CIP) O Credential Level (Certificate, Diploma, Degree) O Length of Program (years, months, weeks) O Special Program Flag (Teacher Certification, Preparatory)

20. Entrance Counseling http://ifap.ed.gov/eannouncements/attachments/051 613DirectSubsidizedLoanLimit150PercentAnnounce1A ttach.pdf

21. Additional Resources O Dear Colleague Letter GEN-13-13 O 150% Webinar (June 4 or June 6) O FSA Handbook (Chapter 6 – Eligibility for Specific FSA Programs) pg 1-71 O NASFAA Your Questions Answered: The 150 Percent Rule