National Student Loan Data System (NSLDS) for Students
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Subsidized Usage

What is Subsidized Usage?

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your "maximum eligibility period". 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.

Your remaining eligibility period is the difference between your maximum eligibility period and the period of time for which you have already received Direct Subsidized Loans. After you have exhausted your remaining eligibility period, you will no longer be able to borrow Direct Subsidized Loans, but may continue to borrow Direct Unsubsidized Loans. You can read more about the difference between the two loan types here.

Because your maximum eligibility period is generally based upon the length of the program of study that you are enrolled in, if you enroll in a program with a different length from your current program, your maximum, and therefore, your remaining eligibility period, will increase or decrease according to whether you enroll in a longer or shorter program of study.

If you have exhausted your remaining eligibility period, did not complete your program, and continue to be enrolled in an undergraduate program, you may become responsible for the interest that accrues on your existing Direct Subsidized Loans earlier than you otherwise would.

Click here for more information about the Direct Subsidized Loan Limit.

Why is enrollment important?

Schools must report your program-specific enrollment to NSLDS. If the enrollment data is inaccurate, the determination of whether interest subsidy is lost will be based on this misreported data. Please verify your enrollment information is correct on the Enrollment page.

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