Important Information for First-time Borrowers:
Effective July 1, 2013, the “Moving Ahead for Progress in the 21st Century Act” established a new provision to Federal Direct Loan statutory requirements that limits a first-time borrower’s eligibility for Federal Direct Subsidized Student Loans to a period not to exceed 150 percent of the length of the borrower’s educational program (the 150% limit). A first-time borrower is a student who has no outstanding balance of principal or interest on a Federal Direct or FFEL student loan as of July 1, 2013. Students who change majors multiple times, drop classes excessively, or retake classes excessively are most likely to be affected by the 150% limit. The Government will no longer provide interest rate deferments for students taking an exceptional amount of time to obtain an undergraduate degree.