New limits on students Subsidized Loans
Posted: September 10, 2013
The Department of Education has changed the length of time a student may borrow Subsidized student loans. This applies to students who are first time student loan borrowers after July 1, 2013. A subsidized student loan does not accrue interest while the student is in school. With the new regulation, eligible students may borrow subsidized loans for a period not to exceed 150% of the length of the borrower’s educational program. Generally, this would mean a full time student in a 2 year program can only receive subsidized loans for 3 years. Students can receive unsubsidized loans as long as they are loan eligible.