Time Limits on Direct Subsidized Loan Eligibility for First Time Borrowers

If your first disbursement of your Direct Subsidized loan is on or after July 1, 2021, there is no time limitation on how long you can receive a Direct Subsidized loan.

But, if you were a first-time borrower on or after July 1, 2013, and before July 1, 2021, there was a limit on the maximum period of time (measured in academic years) that you could receive Direct Subsidized Loans. If this limit applied to you, you could not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This was called your “maximum eligibility period.” Your maximum eligibility period was based on the published length of your current program at that time. You can find the published length of your program of study online at the Programs of Study or in the RIT Undergraduate Bulletin.

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). If you were enrolled in a two-year associate degree program, the maximum period for which you could receive Direct Subsidized Loans was three years (150 percent of 2 years = 3 years).

If you had lost your subsidized loan eligibility due to reaching the 150 percent time limit, your eligibility for new subsidized loans first disbursed on or after July 1, 2021 has been restored.

Students and their families are encouraged to review the Department of Education’s website regarding these time limitations; potential scenarios and examples are illustrated and outlined.