First-time Federal Subsidized Student Loan borrower is no longer eligible for the Subsidized Direct Loan program if he or she exceeds 150% of the published length necessary to graduate within an undergraduate degree program.
In addition, a borrower reaching the 150% limit becomes ineligible for the interest subsidy benefits on all Federal Subsidized Loans disbursed to the borrower on or after July 1, 2013.
Congress wants to encourage students to obtain undergraduate degrees within a reasonable time frame. Students who change majors multiple times drop classes excessively or retake classes excessively, are most likely to be affected by Public Law 121-141.
Based upon available information from the U.S. Department of Education, the interpretation of the 150% rule is actual credit hours completed versus credit hours attempted. If different information becomes available, this web site will be updated.If you have any questions, please contact our office.