SULA –  Remaining Eligibility Period – New Q & A Part 2


Understanding the requirements for calculating awards under SULA can be as brain-racking as the calculations themselves. Fortunately, ED provides fairly regular updates to its 150% Direct Subsidized Loan Limit Frequently Asked Questions. In March, ED provided guidance on a several topics which I’ve summarized for you below.

Remaining Eligibility Period

REP-Q5: A school has a policy of automatically awarding only Direct Unsubsidized Loans to a student who has as remaining eligibility period of less than 0.5 years. Is this acceptable?

 REP-A5: No. A student with a remaining eligibility period of 0.5 years or less may be able to receive a Direct Subsidized Loan and must be considered for the loan.

 At standard-term-based schools, a single-term loan would often have a Subsidized Usage Period of less than 0.5 years. Moreover, factors such as enrollment status also play a role in calculating Subsidized Usage Periods. Please see 150% Electronic Announcement  #20 for more information and the subsidized usage calculator on the Common Origination and Disbursement (COD) System’s website, which can assist schools which are attempting to ascertain whether COD would accept a loan record based on the 150% limit.