The U.S. Department of Education offers low-interest loans (subsidized and unsubsidized) to eligible students to help cover the cost of college or career school. Check current interest rates, fees, and loan limits.
Subsidized loans: 150 percent loan limit
Due to the Moving Ahead for Progress in the 21st Century Act,
a new borrower on or after July 1, 2013, cannot receive subsidized
loans for more than 150 percent of the published length of the
borrower’s educational program (for example, a student who is in a 4-year program can receive subsidized loans for up to 6 years).
The law also notes that a borrower who becomes ineligible for
subsidized loans because of the 150 percent limit is ineligible for
interest-subsidy benefits on all subsidized loans first disbursed to
that borrower on or after July 1, 2013.
Who's a first-time borrower?
Generally, one who did not have an outstanding balance of principal or
interest on a Direct Loan or on a FFEL Program loan on July 1, 2013.
Please note that, as of July 1, 2021, this loan limit has been repealed for all first-time borrowers on or after July 1, 2021. While this limit will still apply to students who borrowed a Federal Direct Loan or FFEL Program Loan between July 1, 2013 and July 1, 2021, students whose first Federal Direct Loan disbursement was on or after July 1, 2021 will no longer be held to this 150% limit.