You are no longer eligible to receive Direct Subsidized Loans if you:
- Graduate or finish your undergraduate degree.
- Drop below half-time enrollment (usually less than 6 credits per semester).
- Exceed 150% of the published length of your academic program (e.g., 6 years for a 4-year degree, 3 years for a 2-year program).
- Transition into graduate or professional studies (graduate students are not eligible).
- Reach the aggregate loan limit set for subsidized loans.
The 150% rule means you can only receive subsidized loans for up to 150% of your program's published length. For instance, in a 4-year bachelor's degree, you can receive these loans for up to 6 years. Once you cross that threshold, you lose eligibility for new subsidized loans, and the government no longer pays interest on existing subsidized loans during school or grace periods—you then become responsible for that interest yourself. However, if you switch to a longer program after reaching the 150% limit in a shorter program, you may regain eligibility based on the new program's length. Additionally, as of July 1, 2021, if you are a new borrower, there is no longer a time limit on receiving Direct Subsidized Loans, but the other conditions like enrollment status and degree level still apply. In summary, eligibility for Direct Subsidized Loans ends when you graduate, drop below half-time enrollment, exceed 150% of your program length, move into graduate studies, or hit the subsidized loan limits.
