Transcript 150% Subsidized Loan Eligiblity - Delaware-DC

150% Subsidized
Loan Eligibility
2013 Tri-State Fall Conference
Angie Hovatter
Andrew Harvey
Who’s Counting
Public Law 112-141
O Moving Ahead for Progress in the 21st
Century (MAP 21) – enacted July 6, 2012.
O Amended the HEA to establish a limit on
Direct Subsidized Loan eligibility
O Waived requirement for negotiated
rulemaking and master calendar.
What did it say?
O A new borrower on or
after July 1st, 2013
cannot receive
subsidized loans for
more than 150% of
the published length
of the borrower’s
educational program.
O Affects only 1st time borrowers
O NO effect on Unsubsidized Loans or PLUS
loans
O Determining When 150% Limit is Met
O Maximum Eligibility Period
(less)
Total Subsidized Usage Periods
(equals)
Remaining Eligibility Period
Maximum Eligibility Period
Examples
Program Length
Max. Eligibility
Period
5-Year Bachelor’s
Degree
X 1.5
7.50 Years
4-Year Bachelor’s
Degree
X 1.5
6.00 Years
2-Year Associate’s
Degree
X 1.5
3.00 Years
2-Year Certificate
Program
X 1.5
3.00 Years
Direct Subsidized Loan
Limitation
O Student’s maximum time to receive Direct
Subsidized Loans is established based on
the length of the program in which the
student is currently enrolled.
Examples
O Student receives 3 full
years of Direct
Subsidized Loans while
enrolled in two-year
program.
O Max = 3 years (less)
Usage (3 years) = ZERO
remaining eligiblity.
O Student receives 3 full
O
O
O
O
years of Direct Subsidized
loans while enrolled in a
two-year program.
Student transfers to a fouryear program.
Maximum Eligibility Period
= 6 years.
Total Usage = 3 Years
Remaining Eligibilty = 3
Years
O Student receives 2 full
O
O
O
O
years of Direct Subsidized
Loans while enrolled in a
four-year program.
Student transfers to a twoyear certificate program.
Maximum Eligibility = 3
years
Total Usage = 2 years
Remaining Eligibility = 1
year
O Student receives 5 full years
O
O
O
O
of Direct Subsidized Loans
while enrolled in a four-year
program.
Student enrolls in another
four-year program.
Maximum Eligibility Period =
6 year
Total Usage = 5 years
Remaining Eligibility = 1
year
O Student receives 6 full
O
O
O
O
years of Direct Subsidized
Loans while enrolled in a
four-year program.
Student continues
enrollment in the same
four-year program.
Maximum Eligibility = 6
years
Total Usage = 6 years
Remaining Eligibility
=ZERO
O Student received on Direct
O
O
O
O
Subsidized Loan while
enrolled in an 18-week
certificate program.
Student enrolls in a two-year
program.
Maximum Eligibility = 3 years
Total Usage = 0.50 years
Remaining Eligbility = 2.5
years
Loss of Interest Subsidy
O Borrower responsible for interest triggered
from date of continued or subsequent
enrollment.
O Responsible for interest whether or not
student continues borrowing.
O Loan remains Direct Subsidized Loan (just
loses subsidy)
O Lost interest subsidy on a loan cannot be
regained.
O Borrower enrolls in a four-year program (max 6
O
O
O
O
years)
Received 4 years of Direct Subsidized Loans.
Has 2 years remaining in eligibility.
Borrower transfers to a two-year program (max 3
years)
Borrower has NO REMAINIG ELIGIBILITY.
Whose keeping track?
O ED/FSA will calculate, and
O
O
O
O
O
O
inform students
CPS – Codes and Comments
on SAR/ISIR
NSLDS – New Borrower
NSLDS – Loss of Subsidy
Indicator
COD – Reports to School
COD – Editing & Enforcement
Direct Loan Servicers – Loss of
Subsidy Benefits
What you we have to do?
O Report and Update
enrollment and loan period
O <AcademicYearBeginDate>
&<AcademicYearEndDate>
O <FinancialAidBeginDate> &
<FinancialAidEndDate>
2014-2015 and beyond
O Additional Information to Report
O Student’s Enrollment Leve (FT, TQT, HT)
O Classification of Instructional Program Code
(CIP)
O Credential Level (Certificate, Diploma,
Degree)
O Length of Program (years, months, weeks)
O Special Program Flag (Teacher Certification,
Preparatory)
Entrance Counseling
http://ifap.ed.gov/eannouncements/attachments/051
613DirectSubsidizedLoanLimit150PercentAnnounce1A
ttach.pdf
Additional Resources
O Dear Colleague Letter GEN-13-13
O 150% Webinar (June 4 or June 6)
O FSA Handbook (Chapter 6 – Eligibility for
Specific FSA Programs) pg 1-71
O NASFAA Your Questions Answered: The 150
Percent Rule