You can usually find the published length of any previous program of study by contacting your school. For example, if you were enrolled in a four-year bachelor's degree program, the maximum period for which you could receive Direct Subsidized Loans was six years (150 percent of 4 years = 6 years).
Students are eligible for direct subsidized loans while they are enrolled in school at least half-time and during the six-month grace period after leaving school.
For instance, you might no longer meet one of the basic eligibility criteria, or you might have changed majors and no longer be enrolled in a program that makes you eligible to receive a specific type of funding (for instance, a Teacher Education Assistance for College and Higher Education [TEACH] Grant).
There's no official income cutoff to qualify for federal student aid. Yes, your family's annual income influences your aid package, but other factors, such as family size and year in school, also help determine your level of aid.
Direct Unsubsidized Loans are available to undergraduate, graduate, or professional degree students enrolled at least half-time at a school that participates in the Direct Loan Program. Financial need is not required to qualify. Was this page helpful?
If you are awarded Federal Direct Subsidized or Unsubsidized loans, each loan must be accepted or declined. ALL of a Subsidized Loan must be accepted before accepting any portion of an Unsubsidized Loan.
Subsidized Loan. A federal student loan for which in some cases, a borrower is not responsible for paying the interest while in an in-school, grace*, or deferment period.
The PSLF Program forgives the remaining balance on your Direct Loans after you've made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.
The maximum Federal Pell Grant award is $7,395 for the 2024–25 award year (July 1, 2024, to June 30, 2025).
$20,500 (unsubsidized only). $31,000-No more than $23,000 of this amount may be in subsidized loans. $57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans.
All federal loans will have “Direct” in their names, like “Direct Subsidized Loan,” “Direct PLUS Loan” or “Direct Consolidation Loan,” for example. For PLUS Loans, you might see specific titles, like “Parent PLUS Loans.” Older student loan names include Perkins, FFEL, and Stafford.
This “150 percent rule” means students in a four-year degree program will be eligible for subsidized student loans for the equivalent of six years.
Grants and Student Loans
Any money left over is paid to you directly for other education expenses. If you get your loan money, but then you realize that you don't need the money after all, you may cancel all or part of your loan within 120 days of receiving it and no interest or fees will be charged.
Federal loan funds that are returned within 120 days of disbursement will have all origination fees and accrued interest negated off of the amount returned. Returning monies this way will directly reduce the principal of the loan.
Both Direct Subsidized Loans and Direct Unsubsidized Loans are offered to students regardless of their credit history and neither will result in a hard inquiry. A Direct PLUS Loan, however, does require a credit check, so if you're considering one, your credit scores may take a slight hit.
You'll have to repay the money with interest. Subsidized loans don't generally start accruing (accumulating) interest until you leave school (or drop below half-time enrollment), so accept a subsidized loan before an unsubsidized loan. Next, accept an unsubsidized loan before a PLUS loan.
In addition, you must register for, and maintain enrollment in, at least 6 credits each semester in order to qualify for a Federal Direct Loan. If you fall below 6 credits before your loan is disbursed, you will not be able to receive the funds.
There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college. It's important to make sure you fill out the FAFSA as quickly as possible once it opens for the following school year.
Interest accrual, interest capitalization, fees, deferment, forbearance, and grace periods can all increase your student loan balance. Paying more than the minimum each month, making extra payments, and paying interest while in school can help reduce your loan costs.
If you don't meet baseline eligibility requirements, or if you've previously defaulted on a loan, you may not be approved for a federal student loan. You must maintain "satisfactory progress" in school to be approved for student loans. You can take steps to regain or improve your eligibility for student loans.
Subsidized Loans are loans for undergraduate students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods.
However, borrowers must demonstrate financial need to qualify for subsidized student loans. Unsubsidized student loans are still a good option since they typically offer better rates and terms than private student loans — plus anyone can get an unsubsidized loan, regardless of income.