Student Loans

Federal Direct Subsidized Stafford Loans are need-based loans. The term “subsidized” means the federal government pays interest on the loan on the student’s behalf until the student enters repayment.

Maximum Eligibility Period to Receive Direct Subsidized Loans

There is a limit on the maximum period of time (measured in academic years) you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” You can usually find the published length of any program of study in the catalog.

For example, if you are enrolled in a 4-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years). If you are enrolled in a 2-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years).

Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.

Federal Direct Unsubsidized Stafford Loans are non-need based loans. The term “unsubsidized” means the federal government does not pay interest on the loan until the student enters repayment; students are responsible for paying all accrued interest. Interest can be paid while the student is in school, or it can be deferred until the student enters repayment. If deferred, the unpaid interest that accrues is added to the loan amount the student borrowed, a process known as capitalization.