150 Percent Direct Subsidized Loan Limit Information

Since 2013, Direct Loan statutory requirements have limited a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150% of the length of the borrower’s educational program. In addition, under certain conditions, the requirements have caused first-time borrowers who have met or exceeded the 150% limit to lose the interest subsidy on their Direct Subsidized Loans. The FAFSA Simplification Act, part of the Consolidated Appropriations Act, 2021 (Public Law 116-260) provides for a repeal of the 150% Subsidized Usage Limit Applies (SULA) requirements. Final regulations for the repeal of the SULA requirements were published in the Federal Register on June 14, 2021.

The following links are to the published Federal Register Notices and regulations pertaining to the 150% limit.

The following links are to the published Dear Colleague Letters and Electronic Announcements pertaining to the 150% limit.

These Frequently Asked Questions provide information and operational guidance on the implementation and the repeal of the 150% limit.

The listing of Frequently Asked Questions will be updated periodically and include the date of the update. New and/or updated questions and answers will be marked NEW.

See the following upcoming training opportunities and links to previously held webinars and other training.

These resources provide valuable information on the 150% limit.

Last Modified: 07/14/2021 • Published: 03/28/2021